Lone Star College - MINUTES OF THE PUBLIC HEARING AND ...€¦ · lone star college system . central services and training center . training and development center board room . 5000

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MINUTES OF THE PUBLIC HEARING AND

WORKSHOP AND REGULAR MEETING OF THE BOARD OF TRUSTEES LONE STAR COLLEGE SYSTEM

CENTRAL SERVICES AND TRAINING CENTER TRAINING AND DEVELOPMENT CENTER BOARD ROOM

5000 RESEARCH FOREST DRIVE THE WOODLANDS, TEXAS 77381-4356

August 7, 2014 5:00 p.m.

PRESENT: Mr. Bob Wolfe, Vice Chair Ms. Priscilla Kelly, Secretary Mr. David Vogt, Assistant Secretary Mr. Robert Adam Ms. Linda Good Dr. Kyle Scott Dr. Ron Trowbridge ABSENT: Dr. David Holsey, Chair Ms. Stephanie Marquard Public Hearing – 2014-2015 Proposed Budget I. CALL TO ORDER: Mr. Wolfe called the public hearing of the 2014-2015 proposed

budget to order at 5:00 p.m. after determining a quorum was present. II. PLEDGE OF ALLEGIANCE: Dr. Trowbridge led the Board and guests in reciting the

Pledge of Allegiance. III. CERTIFICATION OF THE POSTING OF THE NOTICE OF THE MEETING:

Chancellor Head confirmed that the Notice for the meeting had been properly posted. No action was required. A copy is attached as Exhibit “A.” Ms. Kelly entered the meeting at 5:02 p.m.

IV. PRESENTATION OF THE 2014-2015 PROPOSED BUDGET: Chancellor Steve

Head presented an overview of the recommended budget with total operating and auxiliary funds of $331.93M. The proposed budget includes a 2% raise for all full time employees on September 1, 2014 and an additional 1.5% to follow on March 1, 2015 and a 4% raise for part time staff.

V. CITIZENS COMMENTS: None VI. ADJOURNMENT OF PUBLIC HEARING: Mr. Wolfe adjourned the Public Hearing

at 5:05 p.m.

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Workshop and Regular Meeting I. CALL TO ORDER: Mr. Wolfe called the workshop and regular meeting of the Board

of Trustees to order at 5:05 p.m. after determining that a quorum was present. II. CERTIFICATION OF THE POSTING OF THE NOTICE OF THE MEETING:

Chancellor Head confirmed that the Notice for the meeting had been properly posted. No action was required. A copy is attached as Exhibit “B”.

Mr. Vogt entered the meeting at 5:08 p.m.

III. INTRODUCTIONS, SPECIAL GUESTS AND RECOGNITIONS: Keri Rogers, vice

chancellor of academic affairs, introduced Carolyn Watson, vice president of corporate responsibility with JP Morgan Chase and Nadia Nazarenko, LSCS executive director of college preparation. JP Morgan Chase presented a grant check of $500,000 for the Accelerated Lone Star Program. This program allows students to earn a workforce certificate while building core skills in mathematics, reading, writing and language. This grant will allow Lone Star College to grow the current program significantly. Dr. Head introduced Penny Westerfeld, interim president at LSC-North Harris and Dr. Lee Ann Nutt, acting president at LSC-Tomball. Chancellor Head welcomed past board members, Dr. Brad York and Dr. Don Stewart.

IV. WORKSHOP: Chancellor Head introduced Linda Head, associate vice chancellor of workforce education and corporate partnerships. Ms. Head gave an overview of workforce education programs to include Career and Technical Education, Workforce Education, Corporate College and Test Preparation and Testing for Industry Certification and how the workforce council works in determining programs offered at Lone Star College. The Centers of Excellence were identified at all the campuses and recommendations were given for renovations at existing facilities.

V. CLOSED SESSION: At 5:50 p.m. Mr. Wolfe convened the Board in closed session, in

accordance with Section 551.001 et. seq. of the Texas Government Code under one or more of the following provision(s) of the Act:

Section 551.071 - Consultation with Attorney Section 551.072 - Deliberation Regarding Real Property

Section 551.073 - Deliberation Regarding Prospective Gift Section 551.074 - Personnel Matters Section 551.076 - Deliberation Regarding Security Devices Section 551.087 - Economic Development Negotiations VI. RECONVENE REGULAR MEETING: Mr. Wolfe reconvened the open meeting at

7:29 p.m.

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VII. APPROVAL OF THE MINUTES OF THE JUNE 5, 2014 WORKSHOP AND REGULAR MEETING, JULY 1, 2014 SPECIAL MEETING AND THE JULY 28, 2014 BUDGE WORKSHOP: upon a motion by Dr. Trowbridge and a second to the motion by Ms. Kelly, the board unanimously approved the minutes of the June 5, 2014 Workshop and Regular Meeting. Upon a motion by Ms. Kelly and a second to the motion by Dr. Trowbridge, the board approved the minutes of the July 1, 2014 Special Meeting. Ms. Good and Mr. Adam abstained. Upon a motion by Dr. Trowbridge and a second to the motion by Ms. Good the board approved the minutes of the July 28, 2014 Budget Workshop. Mr. Wolfe and Mr. Adam abstained.

VIII. CITIZENS DESIRING TO ADDRESS THE BOARD: Dr. Larry Loomis Price spoke

about Board Policy Changes. Mr. Gordon Carruth spoke about legal matters. Mr. Jon Bauman, vice-president of Texas PAC spoke about the Bond Referendum and building partnerships with corporations to help offset costs of buildings. Dr. Elizabeth Jensen welcomed Chancellor Head and spoke about the public comments period during the board meeting and the bond proposal. Dr. John Burgduff spoke on behalf of the American Federation of Teachers and welcomed Chancellor Head and commended the Board for selecting Dr. Head as the new Chancellor.

IX. SPECIAL REPORTS AND ANNOUNCEMENTS:

1. Chancellor: Chancellor Head discussed the report showing the economic impact of Lone Star College $3.1 billion in the area for the year. Fall enrollment is up 10% across the system compared to this time last year. Chancellor Head introduced Shawn Arrajj, Community Impact Newspaper, Mihir Zaveri, Houston Chronicle, Matthew Costa, Conroe Courier and Mark Castleschouldt, chief appraiser of Montgomery County Appraisal District. Dr. Head announced the system wide Convocation will be held on August 18, 2014 at 8:30 a.m. at The Woodlands Waterway Marriott.

2. College Presidents: None.

3. Vice Chancellors: None. X. CONSIDERATION OF THE CONSENT AGENDA: Items number 1, 2, 3, 4, 14 and

21 were removed from the agenda to be considered separately. Mr. Wolfe proceeded with the Consent Agenda. Dr. Trowbridge made a motion to approve items 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 19, 20, 22, 23, 24 and 25. Dr. Scott seconded the motion and the Board unanimously passed the Consent Agenda. A copy is attached as Exhibit “C”.

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XI. POLICY REPORT AND CONSIDERATIONS:

1. Consideration of Approval of the Recommended Revision of the Lone Star College Board Policy Sections I.E.I.42, 43, 44, 46 and 47 (SECOND READING) (ACTION ITEM 1): upon a motion made by Mr. Vogt and a second by Ms. Kelly, the Board approved the recommended revisions of Lone Star College System Board Policy Section I.E.I.42, 43, 44, 46 and 47. Dr. Trowbridge and Dr. Scott opposed. A copy is attached as Exhibit “D”.

2. Consideration of Approval of the Order Calling Trustee and Bond Election and to

Appoint a Staff Agent for the Board Secretary to Perform Election Duties (ACTION ITEM 2): upon a motion by Ms. Good and a second by Ms. Kelly the Board approved the order calling the Trustee and Bond election on November 4, 2014. The Trustee election is for District No. 3, District No. 4 and District No. 9 for a six year term on the Board of Trustees of the Lone Star College System. The Bond election is to authorize the issuance of bonds for the construction and equipment of school buildings and related infrastructure in the System and the purchase of the necessary sites. Dr. Scott opposed. A copy is attached as Exhibit “E”.

XII. FINANCIAL REPORTS AND CONSIDERATIONS:

1. Monthly Financial Statements: Ms. Diane Novak, associate vice chancellor for

accounting, presented the monthly financial statements for the month ended May 31, 2014 and June 30, 2014. A copy is attached as Exhibit “F”.

2. Quarterly and Annual Investment Reports: Ms. Diane Novak, associate vice

chancellor for accounting, presented the quarterly investment reports. A copy is attached as Exhibit “F”.

3. Consideration of Adoption of the Recommended 2014-15 Budgets (ACTION ITEM

3: upon a motion by Ms. Good and a second by Mr. Vogt the board unanimously approved adopting the 2014-15 budgets for the General and Auxiliary Funds. A copy is attached as Exhibit “G”.

4. Consideration of Adoption of a Resolution Approving the Expansion & Remodeling

of the Facilities of the Montgomery Central Appraisal District (ACTION ITEM 4): upon a motion made by Ms. Kelly and a second by Mr. Adam the Board adopted a resolution approving the expansion & remodeling of the facilities of the Montgomery Central Appraisal District. Mr. Vogt abstained. A copy is attached as Exhibit “H”.

5. RESOLUTION AUTHORIZING THE REDEMPTION AND/OR DEFEASANCE

OF CERTAIN OUTSTANDING BONDS OF LONE STAR COLLEGE SYSTEM AND AUTHORIZING THE ISSUANCE OF LONE STAR COLLEGE SYSTEM LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS SERIES 2014 (ACTION ITEM 5): the Board unanimously approved the order authorizing the issuance of Lone Star College System Limited Tax General Obligation Refunding

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Bonds, Series 2014 and the redemption and/or defeasance of certain outstanding debt with available funds of the System. This item was passed in the Consent Agenda. A copy is attached as Exhibit “I”.

6. Consideration of Approval to Purchase Science Supplies, Equipment and

Instructional Chemicals for the System (ACTION ITEM 6): the Board unanimously approved the purchase of science supplies, equipment and instructional chemicals for the System for an estimated amount of $600,000 annually and a not-to-exceed amount of $3,000,000 over five years. If science supplies, equipment and instructional chemicals are not available from the listed vendors, they may be purchased from vendors under contract with approved cooperatives. This item was passed in the Consent Agenda. A copy is attached as Exhibit “J”.

7. Consideration of Approval to Purchase an Echocardiography Machine for the

Echocardiography Program at LSC-CyFair (ACTION ITEM 7): the Board unanimously approved the purchase of an echocardiography machine for the Echocardiography program at LSC-CyFair in the amount of $122,004 from GE Healthcare, 9900 Innovation Drive, Wauwatosa, WI 53226. This item was passed in the Consent Agenda. A copy is attached as Exhibit “K”.

8. Consideration of Approval to Purchase X-Ray Equipment and Accessories for the

MRT Program at LSC-Montgomery (ACTION ITEM 8): the Board unanimously approved the purchase of x-ray equipment and accessories for the MRT program at LSC-Montgomery from Blue Ox Medical Technologies, 7845 Colony Road, Suite C4-327, Charlotte, NC 28226, in the amount of $115,800. This item was passed in the Consent Agenda. A copy is attached as Exhibit “L”.

9. Consideration of Approval to Purchase Workforce Equipment for the Energy and

Manufacturing Institute (EMI) at LSC-University Park (ACTION ITEM 9): the Board unanimously approved the purchase of workforce equipment for the EMI at LSC-University Park from Mazak Corporation, 10950 Greenbend Blvd., Houston, TX 77067, in the amount of $229,300. This item was passed in the Consent Agenda. A copy is attached as Exhibit “M”.

10. Consideration of Approval to Purchase Instrumentation Equipment for the Oil and Gas and Automated Service Technician Programs at the Energy and Manufacturing Institute (EMI) at LSC-University Park (ACTION ITEM 10): the Board unanimously approved the purchase of instrumentation equipment for the Oil and Gas and Automated Service Technician programs at EMI at LSC-University Park from Hampden Engineering Corporation, 99 Shaker Road, P.O. Box 563, East Longmeadow, MA 01028, in the amount of $284,733. This item was passed in the Consent Agenda. A copy is attached as Exhibit “N”.

11. Consideration of Approval to Purchase Engineering Equipment for the Engineering

Technology Petroleum Program at LSC-University Park (ACTION ITEM 11): the Board unanimously approved the purchase of engineering equipment for the

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Engineering Technology Petroleum program at LSC-University Park from Advanced Technologies Consultants, Inc., 110 West Main Street, P.O. Box 905, Northville, MI 48167, in the amount of $157,409. This item was passed in the Consent Agenda. A copy is attached as Exhibit “O”.

12. Consideration of Approval to Purchase Library Materials, Supplies, Services and

Resource Sharing Membership Fees for FY 2014-15 (ACTION ITEM 12): the Board unanimously approved the purchase of library materials, supplies, services and resource sharing membership fees for FY 2014-15 for the System’s libraries in an amount not-to-exceed $1,400,000. In addition, authorizes the Chancellor or designee to execute any agreements related to these purchases. This item was passed in the Consent Agenda. A copy is attached as Exhibit “P”.

13. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and

Execute a Contract to Purchase a Facilities Management Services Program for LSC-North Harris and Related Satellite Centers (ACTION ITEM 13): the Board unanimously authorized the Chancellor or designee to negotiate and execute a contract to purchase a facilities management services program for LSC-North Harris and related satellite centers from TD Industries, Inc., 13850 Diplomat Drive, Dallas, TX 77040, in an estimated amount of $15,080,000 over a five year period. This item was passed in the Consent Agenda. A copy is attached as Exhibit “Q”.

14. Consideration of Approval to Au thor i z e the Chancellor or D e s i g n e e to

Negotiate and Execute a Contract to Purchase Architectural Services for the LSC-East Aldine Satellite Center (Aldine) (ACTION ITEM 14): upon a motion made by Ms. Good and a second made by Mr. Vogt the Board unanimously approved authorizing the Chancellor or designee to negotiate and execute a contract for the purchase of architectural services for Aldine, contingent upon finalization of funding, with the highest ranked firm, Bay-IBI Group Architects, 455, East Medical Center Boulevard, Suite 500, PO Box 891209, Houston TX 77289. If negotiations cease for any reason with the 1st ranked firm, the System will proceed to negotiate with the 2nd ranked firm, Gensler. A copy is attached as Exhibit “R”.

15. Consideration of Approval to Purchase Additional Architectural Services for LSC-

University Park (ACTION ITEM 15): the Board unanimously approved the purchase of additional architectural services in the amount of $250,000, bringing the total not-to-exceed amount for these services over the three year period to $1,750,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “S”.

16. Consideration of Approval to Purchase Additional Architectural Services for

Renovation Projects (ACTION ITEM 16): the Board unanimously approved the purchase of additional architectural services for renovation projects in the amount of $400,000, bringing the total not-to-exceed amount for these services over the three year period to $1,000,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “T”.

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17. Consideration of Approval of Annual Purchases of Construction and Related Services

for the System (ACTION ITEM 17): the Board unanimously approved the purchase of construction and related services for the System in an amount not-to-exceed $10 million in FY 2014-15. In addition, authorizes the Chancellor or designee to negotiate and execute any contracts related to these purchases. This item was passed in the Consent Agenda. A copy is attached as Exhibit “U”.

18. Consideration of Approval of Annual Purchases of Technology Hardware, Software

and Services (ACTION ITEM 18): the Board unanimously approved the purchase of technology hardware, software and services in an amount not to exceed $15,000,000 in FY 2014-15. In addition, authorizes the Chancellor or designee to execute any agreements or statements of work related to these purchases. This item was passed in the Consent Agenda. A copy is attached as Exhibit “V”.

19. Consideration of Approval to Renew Annual Insurance Policies for Fiscal Year 2014-

15 and Agreements for the Administration of Student Liability and Medical Insurance (ACTION ITEM 19): the Board unanimously approved the renewal of the annual insurance policies for fiscal year 2014-15 with estimated premiums totaling $2.4 million, and the agreements for the administration of student liability and medical insurance. This item was passed in the Consent Agenda. A copy is attached as Exhibit “W”.

20. Consideration of Approval to Purchase Printing and Mailing Services, Including

Postage, for the Star and Silver Star Newsletters (ACTION ITEM 20): the Board unanimously approved the purchase of printing and mailing services, including postage, for the Star and Silver Star newsletters for an annual amount of $185,000 and a total of $924,000 over five years from the following vendors: Trend Offset Printing, $83,000, Printing Services; Premier IMS, $28,000, Mailing Services; and United States Postal Service, $74,000, Postage. This item was passed in the Consent Agenda. A copy is attached as Exhibit “X”.

21. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and

Execute a Contract for the Purchase of System-Wide On-Demand Tele-Med Health Care Access Services for Employees (ACTION ITEM 21): upon a motion made by Ms. Good and a second by Ms. Kelly the Board unanimously approved authorizing the Chancellor or designee to negotiate and execute a contract for system-wide on-demand tele-med health care access services for employees from AmeriDoc, LLC, 14785 Preston Road, Suite 935, Dallas, Texas 75254, in an estimated annual amount of $350,000 for a total estimated cost of $1,050,000 over three years. A copy is attached as Exhibit “Y”.

22. Consideration of Approval to Purchase Access Control Card Readers for LSC-CyFair

(ACTION ITEM 22): the Board unanimously approved the purchase of access control card readers for LCS-CyFair from Stanley Convergent Security Solutions,

Certification of Posting of Notice to the August 7, 2014 Public Hearing

2014-15 Proposed Budget of the Lone Star College System

Board of Trustees I, Stephen C. Head, Chancellor of the Lone Star College System, do hereby certify that a notice of the Public Hearing was posted on Monday the 4th day of August, 2014 in a place convenient to the public in the Administration Office of the Central Services and Training Center, on all college campuses and on the system website as required by Section 551.002 et seq., Texas Government Code. Special notice of the meeting was provided to the news media as required by Section 551.001 et seq., Texas Government Code. Given under my hand this the 4th day of August, 2014.

LONE STAR COLLEGE SYSTEM

_____________________ Stephen C. Head

Chancellor

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Exhibit "A"

Certification of Posting of Notice to the August 7, 2014 Workshop and Regular Meeting of the

Lone Star College System’s Board of Trustees

I, Stephen C. Head, Chancellor of the Lone Star College System, do hereby certify that a notice of this meeting was posted on Monday the 4th day of August, 2014 in a place convenient to the public in the Administration Office of the Central Services and Training Center, on all college campuses and on the system website as required by Section 551.002 et seq., Texas Government Code. Special notice of the meeting was provided to the news media as required by Section 551.001 et seq., Texas Government Code. Given under my hand this the 4th day of August, 2014.


_____________________ Stephen C. Head

Chancellor

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Exhibit "B"

Consideration of Consent Agenda Board Meeting 8-7-14 Consent Agenda:

A roll call of individual action items will determine the consent agenda. If a trustee has a question or plans to cast a negative vote regarding a specific recommendation, then the trustee/trustees need to acknowledge their intention to the Chair by show of hand during the roll call: this action item will be considered in the regular order of business as an individual action item. Those action items that the trustees plan to approve without further question or discussion will be placed on the consent agenda during roll call of individual action items. Upon the creation of the consent agenda, a motion, a second to the motion and unanimous approval of the Board of Trustees is needed to approve the action items. Upon approval of the consent agenda, the Board of Trustees will proceed with the remainder of the agenda.

Rationale: The consent agenda format is an organization process for meetings that allows the

governing board to focus their time and attention on action items that require more elaboration, information, and/or discussion. The intent of the consent agenda is to support efficiency and effectiveness of the meeting.

Tally of Action Items: Chancellor Board Consent Recommended Separate Agenda Separate Action Action

# 1 Approve Rev. to LSC Board Policy I.E.I.42,43,44,46,47 ______ ______ ______ # 2Approve Order Calling Trustee/BondElect/Appt/Staff/Agt ______ ______ ______ # 3 Adopt 2014-15 Budgets ______ ______ ______ # 4 Approve Resolution for Expansion MCAD Off/Complex ______ ______ ______ # 5 Authorize GO Refunding Bonds Series 2014 ______ ______ ______ # 6 Approve Purchase Science/Supp/Instruct/Chem/System ______ ______ ______ # 7 Approve Purchase Echocardio/Mach/LSC-CF ______ ______ ______ # 8 Approve Purchase X-Ray Equip/LSC-MC ______ ______ ______ # 9 Approve Purch/Workforce/Equip/EMI/LSC-UP ______ ______ ______ #10 Approve Purch/Instrumentation/Equip/EMI/LSC-UP ______ ______ ______ #11 Approve Purch/Engineering/Equip/Tech/Petro/LSC-UP ______ ______ ______ #12 Approve Purchase Library Materials/Svs FY 14-15 ______ ______ ______ #13 Authorize Chan/Neg/Exec/Purch/Facil/Mgt/Svs/LSC-NH ______ ______ ______ #14 Authorize Chan/Neg/Exec/Purch/Arch/Svs/LSC-Aldine ______ ______ ______ #15 Approve Annual/Purch/Add/Architect/Svs/LSC-UP ______ ______ ______ #16 Approve Annual/Purch/Add/Architect/Renov/Projects ______ ______ ______ #17 Approve Annual/Purchases/Constr/Related/Svs/System ______ ______ ______ #18 Approve Ann/Purch/Tech/Hardware/Software/Svcs/Sys ______ ______ ______ #19 Approve Renew Annual Ins/Pol/Stu/Liab/Med/Ins ______ ______ ______ #20 Approve Purch/Print/Mail/Svcs/Star/SilverStar/News ______ ______ ______ #21 Authorize Chan/Neg/Exec Purch of Tele-Health Svs. ______ ______ ______ #22 Approve Purchase of Access Ctrl Card Readers LSC-CF ______ ______ ______ #23 Ratify Appointments ______ ______ ______ #24 Accept Resignations ______ ______ ______ #25 Approve Commissioning of Peace Officers ______ ______ ______

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Exhibit "C"

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X

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X

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X

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Policy Report and Consideration No. 1 (ACTION ITEM 1) Board Meeting 8-7-14 Request: Consideration of Approval of the Recommended Revision of the Lone

Star College Board Policy Sections I.E.I.42, 43, 44, 46 and 47 (Second Reading).

Chancellor’s Recommendation:

That the Board of Trustees approves the recommended revisions of Lone Star College System Board Policy Sections I.E.I.42, 43, 44, 46 and 47.

Rationale: This policy revision clarifies the process and scope of (i) citizen

participation during Board of Trustee Meetings, (ii) the process for citizen registration to participate prior to the Board Meetings, (iii) the permitted conduct of citizens during the Board Meetings and (iv) Administrative Channels/Board of Trustee requirements in resolving complaints and concerns.

Fiscal Impact:

None.

Staff Resource: Steve Head

Brian S. Nelson 832-813-6515 832-813-6655

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Exhibit "D"

L o n e S t a r C o l l e g e S y s t e m B o a r d o f T r u s t e e M e e t i n g

Citizen Registration To Address the Board Regarding Specific Agenda

Items Date:

Board Meeting Date:

Name:

Phone:

Email Address:

Organization:

Agenda Item #: Subject:

For: Against: Testimony is Written: Oral: Or Both:

Written Testimony:

Signed: __________________________ Dated: ___________________________

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LSCS Logo

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August 2014 Board of Trustee Meeting Second Reading

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I.E. Board Meetings

I.E.1. MEETINGS I.E.1.42 - Scope of Participation Citizen participation will be permitted prior to the Board Meeting Executive Session and for those individuals who have registered and requested to speak about a specific agenda item. At all other times during Board meetings, the audience shall not enter into discussion or debate on matters being considered by the Board. No presentation before the Board shall exceed five (5) minutes. The maximum time for all citizen participation shall not exceed 30 minutes. Delegations of more than three (3) persons in speaking about a given agenda item shall appoint one person to present their views before the Board.

I.E.1.43 - Citizen Participation Board meetings are held to transact the business of the System. Citizens shall be allowed to address the Board by registering and requesting the right to speak about a specific agenda item by (i) registering via email and completing the attached form at [email protected] twenty-four (24) hours before the board meeting, or (ii) registering in person using the form provided no later that 5 minutes before the Board Meeting is called to order.

I.E.1.44 - Disruption The following actions shall not be permitted at a Board Meeting: Personal attacks regarding a named person or of a particular position, name calling, profanity, rude demeaning or slanderous remarks, loud or raucous behavior, obscene gestures, accusation of criminal behavior, use of signs and placards and other conduct that is disruptive. Additionally, pursuant to Chapter 42 of the Texas Penal Code, it is a Class B misdemeanor criminal offense for a person, with intent to prevent or disrupt a lawful meeting, to substantially obstruct or interfere with the meeting by physical action or verbal utterance. I.E.1.46 - Complaints and Concerns All Complaints and concerns that can be addressed and/or resolved through proper administrative channels shall be directed as follows: 1. E m p l o y e e c o m p l a i n t s – “ G r i e v a n c e ” S e c t i o n , C h a p t e r I V - H u m a n Resources

http://www.lonestar.edu/trustees.htm

mailto:[email protected]


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2. Termination of employment – “Employee Rights and Privileges” Section, Chapter IV - Human Resources

3. Student complaints – “Student Welfare and Rights” Section,

Chapter VI - Students 4. Student discipline and penalties – “Student Responsibilities” Section,

Chapter VI - Students 5. Student Organizations – “Student Welfare and Rights” Section,

Chapter VI - Students 6. Employee complaints - Unlawful Discrimination and Prohibited Harassment,

Chapter IV- Human Resources Complaints or concerns that do not fall within Nos. 1-6 of this Section I.E.I.46 must be submitted in writing a t [email protected] with a copy to [email protected] w h i c h s h a l l b e h a n d l e d a s f o l l o w s :

1. Complaints that are not subject to Nos. 1-6 listed above shall be submitted to the Board by the Board Liaison so that each complaint may be considered in accordance with Texas law.

2. The Board is not required to respond to the complaints but only to consider them.

3. Board Members may not discuss the complaints in public or otherwise, except as provided by the exceptions to the Texas Open Meetings Act and in Closed Session. 4. Procedures may be developed in implementing the requirements of this Policy Section.

I.E.1.47 - Board’s Response Texas Government Code 551.042 prohibits the Board from responding to any subjects raised that are not on the agenda, except by making one or more of the following responses: 1. stating a known fact relevant to the subject; and/or 2. reciting a specific relevant policy manual section. Furthermore, any deliberation or decision about the non-agenda subject shall be limited to a proposal to place the subject on the agenda for a subsequent meeting.




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LSCS Policy Manual Section adopted by the Board of Trustees on __________, 2014

Policy Report and Consideration No. 2 (ACTION ITEM 2) Board Meeting 8-7-14 Request: Consideration of Approval of the Order Calling Trustee and Bond Election

and to Appoint a Staff Agent for the Board Secretary to Perform the Election Duties


That the Board of Trustees approves the order calling the Trustee and Bond election on November 4, 2014. The Trustee election is for District No. 3, District No. 4 and District No. 9 for a six year term on the Board of Trustees of the Lone Star College System. The Bond election is to authorize the issuance of bonds for the construction and equipment of school buildings and related infrastructure in the System and the purchase of the necessary sites.

Rationale: By United States District Court Consent Decree entered October 11, 2013,

and in accordance with Chapter 130 of the Texas Education Code, an election of trustees for single member districts in Districts 3, 4 and 9 for a six year term is ordered. The Board has determined that the priority educational needs of the System require the construction and rehabilitation of certain facilities and that these needs require the consideration of the issuance of bonds by the voters. The Board is also requested to appoint Helen Clougherty as the agent for Board Secretary, Ms. Priscilla Kelly, to perform the election duties and to keep the office hours required by Section 31.123 of the Election Code. A notice will be posted in accordance with the Election law requirements.

Fiscal Impact: Montgomery County Elections Services, San Jacinto County Election

Services, and Harris County Clerk Elections Division shall conduct the election for the System at the designated county and District 3, 4 and 9 polling sites for early voting and on election day. The estimated cost is approximately $500,000 based on previous election costs. Funds are available in the approved 2013-2014 operating budget. Funds for the 2014-2015 fiscal year will be included in the proposed 2014-2015 operating budget.

Staff Resource: Helen Clougherty 832-813-6514 Brian Nelson 832-813-6655

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Exhibit "E"

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Financial Report and Consideration No. 1 Board Meeting 8-7-14 Report: Monthly Financial Statements

The financial statements for the month ended June 30, 2014 and May 31, 2014,

and the quarterly report for the period ending May 31, 2014 are presented for Board review.

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Exhibit "F"

Prior to fiscal year 2010‐11, the System’s financial software dated revenues as earned the same day as entered into the system. The current software,implemented in 2010‐11, dates revenues in the time period the revenues are earned, regardless of the date the amounts were entered into the software program.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

13‐1412‐1311‐1210‐1109‐1008‐09

17%17%18%16%16%15%

4%4%3%4%4%4%

4%4%3%3%

9%8%

13%10%10%11%

13%13%

30%30%32%

29%

21%22%

7%10%

9%11%12%

13%

4%4%4%4%

6%7%3%3%3%

3%

6%6%2%2%2%2%

3%4% 8%8%8%8%

3%4%

% OF BUDGETED REVENUES COLLECTED

JUNE

MAY

APRIL

MARCH

FEBRUARY

JANUARY

DECEMBER

NOVEMBER

OCTOBER

SEPTEMBER

Prior to fiscal year 2010‐11, the System’s financial software dated expenditures as incurred on the same day as entered into the system. The current software, implemented in 2010‐11, dates expenditures in the time period the expenditures are incurred, regardless of the date the amounts were entered into the software program.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

8%7%8%7%7%7%

7%7%6%8%8%8%

7%7%8%7%8%8%

7%7%8%8%8%8%

7%7%6%7%7%8%

8%9%7%8%10%

9%8%7%9%

8%8%7%

8%9%8%7%8%8%

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SEPTEMBER

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HOW MUCH DO WE NEED IN RESERVES?

REVENUES EXPENDITURES

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Millions

STUDENT REVENUES ‐ FALL, SPRING & SUMMER SEMESTERS

IN‐DISTRICT TUITION OUT OF DISTRICT TUITION OUT OF STATE/INTERNATL TUITIONDUAL CREDIT TUITION FEES‐ALL STUDENTS STATE DEDUCTIONSNON‐CREDIT CORPORATE COLLEGE

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TYPES OF STUDENT REVENUES ‐ FALL, SPRING & SUMMER SEMESTERS

CORPORATE COLLEGE

NON‐CREDIT

STATE DEDUCTIONS

FEES‐ALL STUDENTS

DUAL CREDIT TUITION

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Statement of Revenues and ExpendituresGeneral and Auxiliary FundsYear to Date June 30, 2014Unaudited

83% OF PRIOR YEAR PRIOR YEARFISCAL YEAR % ACTUAL ACTUAL % ACTUAL

BUDGET ACTUAL TO BUDGET 6/30/2013 TO BUDGET

REVENUES:

State Appropriations $ 72,510,000 $ 58,705,316 81.0% $ 54,394,178 81.8%Tuition and Fees 102,720,000 99,597,935 97.0% 95,777,036 97.5%Taxes 109,570,000 109,256,624 99.7% 104,862,898 99.4%Investments 400,000 285,948 71.5% 323,918 99.7%Other 5,980,000 4,254,147 71.1% 3,991,422 74.0%Tuition/Growth Contingency 2,250,000 0 0.0% 0 0.0%

Total Current Operations Revenues 293,430,000 272,099,970 92.7% 259,349,452 93.0%

Auxiliary Revenues 14,700,000 10,894,309 74.1% 7,278,253 66.2%

Total Revenues 308,130,000 282,994,279 91.8% 266,627,705 92.0%

Reserves 9,660,000 - 0.0%

Total Revenues and Reserves 317,790,000 282,994,279 266,627,705

EXPENDITURES:

Instruction-Academic 75,692,530 63,879,346 84.4% 63,396,811 86.8%Instruction-Workforce 29,668,733 25,828,228 87.1% 24,251,728 86.6%Public Service 812,783 636,656 78.3% 584,416 70.8%Academic Support 53,548,614 36,420,203 68.0% 32,866,850 69.3%Student Services 43,066,580 29,167,688 67.7% 26,718,967 71.7%Institutional Support 33,116,715 24,211,528 73.1% 21,347,762 71.4%Plant Operation and Maintenance 32,741,730 23,885,092 72.9% 24,170,295 76.8%Staff Benefits 17,764,315 19,544,156 110.0% 16,650,012 71.8%Growth Contingency 1,328,000 - 0.0% - 0.0%

Total Educational and General Expenditures 287,740,000 223,572,897 77.7% 209,986,841 76.6%

Repair, Replacement and Other Internally Designated 4,800,000 1,531,935 31.9% 1,069,383 24.9%

Auxiliary 14,700,000 8,876,377 60.4% 7,101,166 64.6%

Total Expenditures 307,240,000 233,981,209 76.2% 218,157,390 75.4%

Other Changes - Debt Service & Fund Transfers 10,550,000 6,843,695 5,106,061

Total Expenditures and Transfers 317,790,000 240,824,904 223,263,451

NET INCREASE (DECREASE) IN FUND BALANCESGeneral Funds 0 40,151,443 43,187,167Auxiliary Funds 0 2,017,932 177,087

TOTAL NET INCREASE (DECREASE) IN FUND BALANCES $ 0 $ 42,169,375 $ 43,364,254


Balance SheetJune 30, 2014Unaudited

GASB 34/35 MemorandumGeneral & Reporting & Totals

ASSETS Restricted Investment In Plant Current Year

Cash $ (13,812,754) $ 16,616,813 $ - $ 2,804,059Accounts receivable, net 20,480,637 5,593,707 4,614,731 30,689,075Investments 109,470,744 92,061,276 - 201,532,020Prepaid and deferred expenses 5,688,191 - 5,688,191Inventories, at cost 40,066 - - 40,066Amount to be provided for retirement long-term debt - 583,055,434 - 583,055,434Capital assets, net - - 751,833,204 751,833,204

TOTAL ASSETS $ 121,866,884 $ 697,327,230 $ 756,447,935 $ 1,575,642,049

LIABILITIES AND FUND BALANCES

LIABILITIES:Accounts payable $ 10,304,992 $ 6,768,493 1,892,732 $ 18,966,217Deferred revenues 5,453,085 4,943,399 - 10,396,484Accrued compensable absences payable 7,615,482 319,805 - 7,935,287Accrued interest payable - 10,260,999 - 10,260,999Bonds payable - 627,859,180 - 627,859,180Assets held in custody for others - 7,688,341 - 7,688,341

TOTAL LIABILITIES 23,373,559 657,840,217 1,892,732 683,106,508

FUND BALANCES:Unrestricted 98,493,325 - 458,598,762 557,092,087 Restricted

Non grant agreements - (133,045) - (133,045) Restricted for construction - 30,888,563 294,526,162 325,414,725 Debt service - 8,731,495 1,430,279 10,161,774

TOTAL FUND BALANCES 98,493,325 39,487,013 754,555,203 892,535,541

TOTAL LIABILITIES AND FUND BALANCES $ 121,866,884 $ 697,327,230 $ 756,447,935 $ 1,575,642,049

Auxiliary

Description Ending BV 05/31/2014 Total Buys Total Sells Interest/Dividends Ending BV 06/30/2014 Ending BV 06/30/2013

Weighted Avg.

Purchase Yield

GENERAL FUNDS

CASH 164,523

POOLS 38,882,027 4,115 9,455,705 4,115 29,430,437 24,786,140

AGENCIES

CERTIFICATE OF DEPOSIT 63,232,961 28,257 2,026,201 29,757 61,235,018 63,255,818

MONEY MARKET ACCOUNT 15,101,988 2,200 2,200 15,104,188 15,014,775

BONDS 3,412,704 0 781 3,411,923

Total / Average 120,629,680 34,572 11,482,687 36,071.75 109,181,565 103,221,256 0.29%DEBT SERVICE & CAPITAL

PROJECTS

CERTIFICATE OF DEPOSIT 35,011,175 2,296 2,296 35,013,471 5,109,631

DEBT SERVICE POOLS 33,634,048 851,022 4,759 34,485,069 28,914,257

COMMERCIAL PAPER 6,396,871

CAPITAL PROJECTS POOLS 8,605,815 1,014 1,083,124 1,014 7,523,705 21,741,147

MONEY MARKET ACCOUNT 15,035,830 3,202 3,202 15,039,031 5,008,829

Total / Average 92,286,868 857,533 1,083,124 11,270 92,061,276 67,170,735 0.19%

TOTAL 212,916,548 892,104 12,565,811 47,342 201,242,841 170,391,991 0.25%

LONE STAR COLLEGE SYSTEMSUMMARY OF INVESTMENTS

AS OF JUNE 30, 2014


0

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GENERAL FUNDS DEBT SERVICE & CAPITAL PROJECTS TOTAL

JUNE 2014, PORTFOLIO REPORT

ENDING BV FY JUNE2014

ENDING BV FY JUNE2013

Prior to fiscal year 2010‐11, the System’s financial software dated revenues as earned the same day as entered into the system. The current software,implemented in 2010‐11, dates revenues in the time period the revenues are earned, regardless of the date the amounts were entered into the software program.

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APRIL

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OCTOBER

SEPTEMBER

Prior to fiscal year 2010‐11, the System’s financial software dated expenditures as incurred on the same day as entered into the system. The current software, implemented in 2010‐11, dates expenditures in the time period the expenditures are incurred, regardless of the date the amounts were entered into the software program.

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% OF BUDGETED EXPENDITURES USED

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08‐09 09‐10 10‐11 11‐12 12‐13 13‐14

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HOW MUCH DO WE NEED IN RESERVES?

REVENUES EXPENDITURES


Statement of Revenues and ExpendituresGeneral and Auxiliary FundsYear to Date May 31, 2014Unaudited

75% OF PRIOR YEAR PRIOR YEARFISCAL YEAR % ACTUAL ACTUAL % ACTUAL

BUDGET ACTUAL TO BUDGET 5/31/2013 TO BUDGET

REVENUES:

State Appropriations $ 72,510,000 $ 51,820,124 71.5% $ 48,171,396 72.4%Tuition and Fees 102,720,000 83,042,649 80.8% 80,468,006 81.9%Taxes 109,570,000 108,655,759 99.2% 104,471,541 99.0%Investments 400,000 252,189 63.0% 291,186 89.6%Other 5,980,000 3,556,979 59.5% 3,305,966 61.3%Tuition/Growth Contingency 2,250,000 0 0.0% 0 0.0%

Total Current Operations Revenues 293,430,000 247,327,700 84.3% 236,708,095 84.9%

Auxiliary Revenues 14,700,000 10,558,414 71.8% 6,907,780 62.8%

Total Revenues 308,130,000 257,886,114 83.7% 243,615,875 84.0%

Reserves 9,660,000 - 0.0%

Total Revenues and Reserves 317,790,000 257,886,114 243,615,875

EXPENDITURES:

Instruction-Academic 75,301,159 57,833,744 76.8% 57,566,577 78.9%Instruction-Workforce 29,382,595 23,327,068 79.4% 22,523,510 80.0%Public Service 856,743 566,031 66.1% 531,646 66.5%Academic Support 54,175,879 32,611,051 60.2% 29,740,067 62.0%Student Services 44,646,508 26,280,279 58.9% 24,168,716 64.9%Institutional Support 32,969,405 20,473,585 62.1% 19,405,300 63.9%Plant Operation and Maintenance 32,635,676 21,328,758 65.4% 21,983,951 72.4%Staff Benefits 16,444,035 17,429,098 106.0% 14,621,982 63.1%Growth Contingency 1,328,000 - 0.0% - 0.0%

Total Educational and General Expenditures 287,740,000 199,849,614 69.5% 190,541,749 69.5%

Repair, Replacement and Other Internally Designated 4,800,000 1,342,466 28.0% 766,962 17.8%

Auxiliary 14,700,000 7,953,971 54.1% 6,422,713 58.4%

Total Expenditures 307,240,000 209,146,051 68.1% 197,731,424 68.4%

Other Changes - Debt Service & Fund Transfers 10,550,000 1,918,825 5,106,061

Total Expenditures and Transfers 317,790,000 211,064,876 202,837,485

NET INCREASE (DECREASE) IN FUND BALANCESGeneral Funds 0 44,216,795 40,293,323Auxiliary Funds 0 2,604,443 485,067

TOTAL NET INCREASE (DECREASE) IN FUND BALANCES $ 0 $ 46,821,238 $ 40,778,390


Balance SheetMay 31, 2014Unaudited

GASB 34/35 MemorandumGeneral & Reporting & Totals

ASSETS Restricted Investment In Plant Current Year

Cash $ (17,412,893) $ 17,018,066 $ - $ (394,827)Accounts receivable, net 11,437,013 2,569,478 4,614,731 18,621,222Investments 120,918,859 92,286,868 - 213,205,727Prepaid and deferred expenses 5,566,217 - 5,566,217Inventories, at cost 40,863 - - 40,863Amount to be provided for retirement long-term debt - 583,055,434 - 583,055,434Capital assets, net - - 753,327,292 753,327,292

TOTAL ASSETS $ 120,550,059 $ 694,929,846 $ 757,942,023 $ 1,573,421,928

LIABILITIES AND FUND BALANCES

LIABILITIES:Accounts payable $ 4,185,659 $ 6,709,388 1,892,731 $ 12,787,778Deferred revenues 5,926,380 5,309,735 - 11,236,115Accrued compensable absences payable 7,292,833 312,630 - 7,605,463Accrued interest payable - 7,959,710 - 7,959,710Bonds payable - 627,916,234 - 627,916,234Assets held in custody for others - 8,339,914 - 8,339,914

TOTAL LIABILITIES 17,404,872 656,547,611 1,892,731 675,845,214

FUND BALANCES:Unrestricted 103,145,187 - 459,187,135 562,332,322 Restricted

Non grant agreements - 75,336 - 75,336 Restricted for construction - 32,463,945 295,431,878 327,895,823 Debt service - 5,842,954 1,430,279 7,273,233

TOTAL FUND BALANCES 103,145,187 38,382,235 756,049,292 897,576,714

TOTAL LIABILITIES AND FUND BALANCES $ 120,550,059 $ 694,929,846 $ 757,942,023 $ 1,573,421,928

Auxiliary

QUARTERLY INVESTMENT REPORT

For the Quarter Ended

May 31, 2014

Prepared byValley View Consulting, L.L.C.

/s/ Cynthia F. GilliamCynthia F. Gilliam, Vice Chancellor for Administration & Finance/CFO

/s/ Tammy CortesTammy Cortes, Associate Vice Chancellor for Administration & Finance

These reports were compiled using information provided by the Lone Star College System. No procedures were performed to test the accuracy or completeness of this information. The market values included in these reports were obtained by Valley View Consulting, L.L.C. from sources believed to be accurate and represent proprietary valuation. Due to market fluctuations these levels are not necessarily reflective of current liquidation values. Yield calculations are not determined using standard performance formulas, are not representative of total return yields and do not account for investment advisor fees.

The investment portfolio of the Lone Star College System is in compliance with the Public Funds Investment Act and the System's Investment Policy and strategies.

Strategy Summary:

Quarter End Results by Investment Category:

Asset Type Book Value Market Value Book Value Market Value Avg. YieldPools/DDA/MMA 162,554,435$ 162,554,435$ 111,259,708$ 111,259,708$ 0.16%Securities/CDs 86,854,990 86,854,990 101,656,840 101,652,576 0.36%

Totals 249,409,424$ 249,409,424$ 212,916,548$ 212,912,284$

Total Portfolio 0.26% Total Portfolio 0.24%

Rolling Three Month Treasury 0.04% Rolling Three Month Treasury 0.05%Rolling Six Month Treasury 0.07% Rolling Six Month Treasury 0.07%Rolling One Year Treasury 0.12% Rolling One Year Treasury 0.13%

TexPool 0.03%

Quarterly Interest Earnings 138,245$ YTD Interest Earnings 366,815$

(1) Average Quarterly Yield calculated using quarter end report average yield and adjusted book value.

The Federal Open Market Committee (FOMC) maintained the Fed Funds target range between 0.00% and 0.25% (actual Fed Funds traded <10 bps). In December, the FOMC began tapering the Quantitative Easing (QE3) program. The monthly purchase amount has been decreased three times ($10 billion each time) to $55 billion. A continued, orderly tapering is anticipated as long as economic activity remains moderately positive. Fourth quarter 2013 GDP was revised lower to +2.4% from its earlier estimate of +3.2%. Employment data remains positive, but modest and inconsistent. The US stock markets touched new highs. Financial institution deposit yields generally provide the best interest earnings opportunity, although spreads to security yields have tightened.

Average Quarterly Yield (1) Average Quarter End Yields - Fiscal Year

February 28, 2014 May 31, 2014

Valley View Consulting, L.L.C.Page 1.

Valley View Consulting, L.L.C.

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Treasury Yield Curves

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Page 3.


0250500750

1,0001,2501,5001,7502,0002,250

S&P 500

Page 4.

Detail of Investment Holdings

Coupon/ Maturity Settlement Original Face/ Purchase Book Market Market Life Description Rating Discount Date Date Par Value Price Value Price Value (days) Yield

SSB MMA MMA 0.18% 06/01/14 05/31/14 20,119,472 1.00 20,119,472 1.00 20,119,472 1 0.18%Capital One MMA MMA 0.30% 06/01/14 05/31/14 15,028,301 1.00 15,028,301 1.00 15,028,301 1 0.30%LOGIC LGIP AAAm 0.10% 06/01/14 05/31/14 2,404,930 1.00 2,404,930 1.00 2,404,930 1 0.10%LSIP - Corporate LGIP AAAm 0.12% 06/01/14 05/31/14 8,166,834 1.00 8,166,834 1.00 8,166,834 1 0.12%LSIP - Corporate Plus (3) LGIP AAAm 0.14% 06/01/14 05/31/14 59,938,748 1.00 59,938,748 1.00 59,938,748 1 0.14%LSIP - Government LGIP AAAm 0.04% 06/01/14 05/31/14 94,953 1.00 94,953 1.00 94,953 1 0.04%TexPool LGIP AAAm 0.02% 06/01/14 05/31/14 223,029 1.00 223,029 1.00 223,029 1 0.02%TexPool - Prime LGIP AAAm 0.06% 06/01/14 05/31/14 5,283,441 1.00 5,283,441 1.00 5,283,441 1 0.06%

Southside Bank CD CD0339 0.22% 06/19/14 06/19/13 2,026,201 100.00 2,026,201 100.00 2,026,201 19 0.22%Cadence Bank CD CD5174 0.20% 07/01/14 03/24/14 2,036,725 100.00 2,036,725 100.00 2,036,725 31 0.20%Comerica Bank CD CD9481 0.41% 07/01/14 01/25/13 5,027,309 100.00 5,027,309 100.00 5,027,309 31 0.41%Southside Bank CD CD082914 0.65% 08/29/14 08/29/12 5,056,996 100.00 5,056,996 100.00 5,056,996 90 0.65%Southside Bank CD CD0252 0.30% 09/03/14 06/03/13 4,008,982 100.00 4,008,982 100.00 4,008,982 95 0.30%Southside Bank CD CD6191 0.40% 09/17/14 03/19/13 2,024,620 100.00 2,024,620 100.00 2,024,620 109 0.40%Comerica Bank CD CD9499 0.49% 10/01/14 01/25/13 4,529,389 100.00 4,529,389 100.00 4,529,389 123 0.49%Comerica Bank CD CD5507 0.20% 10/01/14 12/02/13 25,000,000 100.00 25,000,000 100.00 25,000,000 123 0.20%Texas Capital Bank CD CD112013R 0.25% 11/20/14 11/20/13 246,373 100.00 246,373 100.00 246,373 173 0.25%Green Bank CD CD0077R 0.55% 03/20/15 03/20/14 245,000 100.00 245,000 100.00 245,000 293 0.55%Southside Bank CD CD0841 0.42% 03/20/15 09/20/13 6,012,503 100.00 6,012,503 100.00 6,012,503 293 0.42%Comerica Bank CD CD5515 0.27% 07/01/15 12/02/13 10,011,175 100.00 10,011,175 100.00 10,011,175 396 0.27%Comerica Bank CD CD5911 0.23% 08/03/15 03/20/14 8,003,075 100.00 8,003,075 100.00 8,003,075 429 0.23%Dallas Wtrwrks & Swr - Muni 2354163T9 AAA 0.80% 10/01/15 03/25/14 2,400,000 100.00 2,412,704 100.42 2,410,080 488 0.40%Comerica Bank CD CD5671 0.44% 10/01/15 01/24/14 10,014,474 100.00 10,014,474 100.00 10,014,474 488 0.44%Comerica Bank CD CD9473R 0.40% 11/02/15 04/01/14 4,001,315 100.00 4,001,315 100.00 4,001,315 520 0.40%Houston Comm. College - Muni 442368KS4 Aa 0.62% 04/15/16 04/16/14 1,000,000 100.00 1,000,000 99.84 998,360 685 0.62%Comerica Bank CD CD050216 0.64% 05/02/16 05/29/14 10,000,000 100.00 10,000,000 100.00 10,000,000 702 0.64%

212,903,844$ 212,916,548$ 212,912,284$ 142 0.26%

May 31, 2014

(2) Weighted average yield to maturity - For purposes of calculating weighted average yield to maturity, realized and unrealized gains/losses, and Investment Advisor fees are not considered.

(1) Weighted average life - For purposes of calculating weighted average life, Bank Deposit, Local Government Investment Pool, and Money Market Mutual Fund investments are assumed to have a one day maturity.

(3) Original Face/Par Value - For reporting purposes, Purchase Price and Market Price are reported as $1.00 and Original Face/Par Value is adjusted accordingly. Actual Purchase Price and Market Price is $0.50, consequentially Original Face/Par Value would double.



Certificates of Deposit

46%

MMA16%

LOGIC1%

LSIP32%

TexPool3%

Securities2%

Portfolio Composition

This chart describes the portfolio's portion of each investment pool or category.

Page 6.


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Total Portfolio

Quarter End Book Value

This chart tracks the LSCS's Total Portfolio Book Value quarter-by-quarter to provide an historical perspective of the System's financial position.

Page 7.


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$100,000,000

$120,000,000Book Value Maturity Distribution

Maturity Date Call Date

This chart groups the portfolio's positions by maturity and call date. At this time there are no callable investments.

Page 8.

Book Value Comparison

Coupon/ Maturity Original Face/ Original Face/Discount Date Par Value Book Value Purchases Maturities/Calls Par Value Book Value

SSB MMA 0.18% 06/01/14 20,110,380$ 20,110,380$ 9,092$ -$ 20,119,472$ 20,119,472$ Capital One MMA 0.30% 06/01/14 15,016,941 15,016,941 11,360 15,028,301 15,028,301 LOGIC 0.10% 06/01/14 2,404,386 2,404,386 544 2,404,930 2,404,930 LSIP - Corporate 0.12% 06/01/14 12,317,956 12,317,956 (4,151,122) 8,166,834 8,166,834 LSIP - Corporate Plus 0.14% 06/01/14 111,023,843 111,023,843 (51,085,095) 59,938,748 59,938,748 LSIP - Government 0.04% 06/01/14 290,043 290,043 (195,090) 94,953 94,953 TexPool 0.02% 06/01/14 223,013 223,013 16 223,029 223,029 TexPool - Prime 0.06% 06/01/14 1,167,873 1,167,873 4,115,568 5,283,441 5,283,441

Green Bank CD 0.50% 03/20/14 245,000 245,000 (245,000) Encore Bank CD 0.90% 03/20/14 2,032,603 2,032,603 (2,032,603) Comerica Bank CD 0.33% 04/01/14 5,017,931 5,017,931 (5,017,931) Comerica Bank CD 0.49% 05/01/14 603,654 603,654 (603,654) Southside Bank CD 0.61% 05/29/14 5,045,967 5,045,967 (5,045,967) Southside Bank CD 0.22% 06/19/14 2,025,102 2,025,102 1,099 2,026,201 2,026,201 Cadence Bank CD 0.20% 07/01/14 2,036,725 2,036,725 2,036,725 Comerica Bank CD 0.41% 07/01/14 5,022,287 5,022,287 5,023 5,027,309 5,027,309 Southside Bank CD 0.65% 08/29/14 5,048,993 5,048,993 8,002 5,056,996 5,056,996 Southside Bank CD 0.30% 09/03/14 4,006,019 4,006,019 2,963 4,008,982 4,008,982 Southside Bank CD 0.40% 09/17/14 2,022,625 2,022,625 1,995 2,024,620 2,024,620 Comerica Bank CD 0.49% 10/01/14 4,523,982 4,523,982 5,407 4,529,389 4,529,389 Comerica Bank CD 0.20% 10/01/14 25,000,000 25,000,000 25,000,000 25,000,000 Texas Capital Bank CD 0.25% 11/20/14 246,221 246,221 152 246,373 246,373 Green Bank CD 0.55% 03/20/15 245,000 245,000 245,000 Southside Bank CD 0.42% 03/20/15 6,006,283 6,006,283 6,220 6,012,503 6,012,503 Comerica Bank CD 0.27% 07/01/15 10,004,587 10,004,587 6,588 10,011,175 10,011,175 Comerica Bank CD 0.23% 08/03/15 8,003,075 8,003,075 8,003,075 Dallas Wtrwrks & Swr - Muni 0.80% 10/01/15 2,412,704 2,400,000 2,412,704 Comerica Bank CD 0.44% 10/01/15 10,003,737 10,003,737 10,737 10,014,474 10,014,474 Comerica Bank CD 0.40% 11/02/15 4,001,315 4,001,315 4,001,315 Houston Comm. College - Muni 0.62% 04/15/16 1,000,000 1,000,000 1,000,000 Comerica Bank CD 0.64% 05/02/16 10,000,000 10,000,000 10,000,000

249,409,424$ 249,409,424$ 31,883,585$ (68,376,462)$ 212,903,844$ 212,916,548$

May 31, 2014February 28, 2014


Market Value Comparison

Coupon/ Maturity Original Face/ Quarter End Original Face/Discount Date Par Value Market Value Change Par Value Market Value

SSB MMA 0.18% 06/01/14 20,110,380$ 20,110,380$ 9,092$ 20,119,472$ 20,119,472$ Capital One MMA 0.30% 06/01/14 15,016,941 15,016,941 11,360 15,028,301 15,028,301 LOGIC 0.10% 06/01/14 2,404,386 2,404,386 544 2,404,930 2,404,930 LSIP - Corporate 0.12% 06/01/14 12,317,956 12,317,956 (4,151,122) 8,166,834 8,166,834 LSIP - Corporate Plus 0.14% 06/01/14 111,023,843 111,023,843 (51,085,095) 59,938,748 59,938,748 LSIP - Government 0.04% 06/01/14 290,043 290,043 (195,090) 94,953 94,953 TexPool 0.02% 06/01/14 223,013 223,013 16 223,029 223,029 TexPool - Prime 0.06% 06/01/14 1,167,873 1,167,873 4,115,568 5,283,441 5,283,441

Green Bank CD 0.50% 03/20/14 245,000 245,000 (245,000) Encore Bank CD 0.90% 03/20/14 2,032,603 2,032,603 (2,032,603) Comerica Bank CD 0.33% 04/01/14 5,017,931 5,017,931 (5,017,931) Comerica Bank CD 0.49% 05/01/14 603,654 603,654 (603,654) Southside Bank CD 0.61% 05/29/14 5,045,967 5,045,967 (5,045,967) Southside Bank CD 0.22% 06/19/14 2,025,102 2,025,102 1,099 2,026,201 2,026,201 Cadence Bank CD 0.20% 07/01/14 2,036,725 2,036,725 2,036,725 Comerica Bank CD 0.41% 07/01/14 5,022,287 5,022,287 5,023 5,027,309 5,027,309 Southside Bank CD 0.65% 08/29/14 5,048,993 5,048,993 8,002 5,056,996 5,056,996 Southside Bank CD 0.30% 09/03/14 4,006,019 4,006,019 2,963 4,008,982 4,008,982 Southside Bank CD 0.40% 09/17/14 2,022,625 2,022,625 1,995 2,024,620 2,024,620 Comerica Bank CD 0.49% 10/01/14 4,523,982 4,523,982 5,407 4,529,389 4,529,389 Comerica Bank CD 0.20% 10/01/14 25,000,000 25,000,000 - 25,000,000 25,000,000 Texas Capital Bank CD 0.25% 11/20/14 246,221 246,221 152 246,373 246,373 Green Bank CD 0.55% 03/20/15 245,000 245,000 245,000 Southside Bank CD 0.42% 03/20/15 6,006,283 6,006,283 6,220 6,012,503 6,012,503 Comerica Bank CD 0.27% 07/01/15 10,004,587 10,004,587 6,588 10,011,175 10,011,175 Comerica Bank CD 0.23% 08/03/15 8,003,075 8,003,075 8,003,075 Dallas Wtrwrks & Swr - Muni 0.80% 10/01/15 2,410,080 2,400,000 2,410,080 Comerica Bank CD 0.44% 10/01/15 10,003,737 10,003,737 10,737 10,014,474 10,014,474 Comerica Bank CD 0.40% 11/02/15 4,001,315 4,001,315 4,001,315 Houston Comm. College - Muni 0.62% 04/15/16 998,360 1,000,000 998,360 Comerica Bank CD 0.64% 05/02/16 10,000,000 10,000,000 10,000,000

249,409,424$ 249,409,424$ (36,497,140)$ 212,903,844$ 212,912,284$

May 31, 2014February 28, 2014


Book Value Allocated by Fund

Operating CIP CIP CIP I & SDescription Maturity Fund Fund Revenue Bonds MTN Bond Fund Total

SSB MMA 06/01/14 15,101,988$ -$ 5,017,484$ -$ -$ 20,119,472$ Capital One MMA 06/01/14 10,018,345 5,009,955 15,028,301 LOGIC 06/01/14 2,313,124 34,545 40,259 17,002 2,404,930 LSIP - Corporate 06/01/14 3 351,563 7,801,979 13,288 8,166,834 LSIP - Corporate Plus 06/01/14 31,554,514 28,384,234 59,938,748 LSIP - Government 06/01/14 94,414 538 94,953 TexPool 06/01/14 13,999 209,030 223,029 TexPool - Prime 06/01/14 4,905,972 377,468 5,283,441

Southside Bank CD 06/19/14 2,026,201 2,026,201 Cadence Bank CD 07/01/14 2,036,725 2,036,725 Comerica Bank CD 07/01/14 5,027,309 5,027,309 Southside Bank CD 08/29/14 5,056,996 5,056,996 Southside Bank CD 09/03/14 4,008,982 4,008,982 Southside Bank CD 09/17/14 2,024,620 2,024,620 Comerica Bank CD 10/01/14 4,529,389 4,529,389 Comerica Bank CD 10/01/14 25,000,000 25,000,000 Texas Capital Bank CD 11/20/14 246,373 246,373 Green Bank CD 03/20/15 245,000 245,000 Southside Bank CD 03/20/15 6,012,503 6,012,503 Comerica Bank CD 07/01/15 10,011,175 10,011,175 Comerica Bank CD 08/03/15 8,003,075 8,003,075 Dallas Wtrwks & Swr 10/01/15 2,412,704 2,412,704 Comerica Bank CD 10/01/15 10,014,474 10,014,474 Comerica Bank CD 11/02/15 4,001,315 4,001,315 Houston Community College 04/15/16 1,000,000 1,000,000 Comerica Bank CD 05/02/16 10,000,000 10,000,000

Total 120,629,680$ 763,577$ 57,848,984$ 40,259$ 33,634,048$ 212,916,548$

May 31, 2014

Valley View Consulting, L.L.C. Page 11.

Market Value Allocated by Fund

Operating CIP CIP CIP I & SDescription Maturity Fund Fund Revenue Bonds MTN Bond Fund Total

SSB MMA 06/01/14 15,101,988$ -$ 5,017,484$ -$ -$ 20,119,472$ Capital One MMA 06/01/14 10,018,345 5,009,955 15,028,301 LOGIC 06/01/14 2,313,124 34,545 40,259 17,002 2,404,930 LSIP - Corporate 06/01/14 3 351,563 7,801,979 13,288 8,166,834 LSIP - Corporate Plus 06/01/14 31,554,514 28,384,234 59,938,748 LSIP - Government 06/01/14 94,414 538 94,953 TexPool 06/01/14 13,999 209,030 223,029 TexPool - Prime 06/01/14 4,905,972 377,468 5,283,441

Southside Bank CD 06/19/14 2,026,201 2,026,201 Cadence Bank CD 07/01/14 2,036,725 2,036,725 Comerica Bank CD 07/01/14 5,027,309 5,027,309 Southside Bank CD 08/29/14 5,056,996 5,056,996 Southside Bank CD 09/03/14 4,008,982 4,008,982 Southside Bank CD 09/17/14 2,024,620 2,024,620 Comerica Bank CD 10/01/14 4,529,389 4,529,389 Comerica Bank CD 10/01/14 25,000,000 25,000,000 Texas Capital Bank CD 11/20/14 246,373 246,373 Green Bank CD 03/20/15 245,000 245,000 Southside Bank CD 03/20/15 6,012,503 6,012,503 Comerica Bank CD 07/01/15 10,011,175 10,011,175 Comerica Bank CD 08/03/15 8,003,075 8,003,075 Dallas Wtrwks & Swr 10/01/15 2,410,080 2,410,080 Comerica Bank CD 10/01/15 10,014,474 10,014,474 Comerica Bank CD 11/02/15 4,001,315 4,001,315 Houston Community College 04/15/16 998,360 998,360 Comerica Bank CD 05/02/16 10,000,000 10,000,000

Total 120,625,416$ 763,577$ 57,848,984$ 40,259$ 33,634,048$ 212,912,284$

May 31, 2014

Valley View Consulting, L.L.C. Page 12.

Financial Report and Consideration No. 3 (ACTION ITEM 3) Board Meeting 8-7-14 Request: Consideration of Adoption of the Recommended 2014-15 Budgets Chancellor’s Recommendation:

That the Board of Trustees adopts the 2014-15 recommended budgets for the General and Auxiliary Funds.

Rationale: Following several months of study, planning, development and evaluation, the

administration, in consultation with the Board of Trustees, recommends a budget that accurately reflects the System’s educational plan for 2014-15. The recommended budgets are as follows: REVENUES/SOURCES:

SOURCE GENERAL AUXILIARY STATE ALLOCATIONS $ 72,510,000 STUDENT REVENUES 108,930,000 STUDENT REV. CONTINGENCY 1,750,000 LOCAL TAXES 116,230,000 MISCELLANEOUS ACTIVITIES 6,200,000 $15,000,000 RESERVES 11,310,000 TOTAL REVENUES/SOURCES $316,930,000 $15,000,000

EXPENDITURES/USES:

FUND AMOUNT OPERATING $ 296,810,000 STUDENT ACTIVITIES 2,750,000 REPAIRS AND REPLACEMENTS 5,050,000 TECHNOLOGY 12,320,000 TOTAL GENERAL FUNDS $ 316,930,000 AUXILIARY 15,000,000 TOTAL EXPENDITURES/USES $ 331,930,000

State allocations will not increase in 2014-15 since it is the second year in the State’s biennial budget. Student revenues reflect an estimated 4% growth in enrollments, as well as the $2 per credit hour tuition rate and $2 per credit hour technology fee increases approved by the Board of Trustees earlier this year. Certified property values have not been received, but the preliminary rolls provided by the appraisal districts indicate that net taxable values will increase in both Harris and Montgomery Counties by an average of over 10%. In anticipation of adopting the net effective tax rate, the 2014-15 budgeted tax revenues were estimated using a lower tax rate than in the 2014-15 budget. The 2014-15 budget contains several strategic initiatives in support of the System’s commitment to student success, including updating the online

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curriculum development system, funding the second year of the Honors College initiative and modification of iStar to enable tracking of additional student data. Student data will be able to be retrieved and reported in greater detail, emphasizing student outcomes and accountability for those outcomes. Compensation recommendations included in the budget are as follows:

• A 2% cost of living adjustment for all full time employees effective September 1, 2014;

• A 1 ½ % pay increase for all full time employees effective March 1, 2015;

• 21 new full time faculty positions to maintain current ratio of full time faculty to part time faculty;

• Funds to cover any adjunct or part time employees qualifying for retirement and/or group health insurance benefits under the new mandates of the Affordable Care Act;

• A 4% increase in the part time hourly rates; • A 7% increase in group health insurance premiums, with the majority

of the increase offset by additional insurance funding provided by the state;

• And to assist employees with the increase in premiums, a tele-health program that is at no cost for employees and has the potential of providing employees with significant reductions in annual out-of-pocket and co-pay costs the employee incurs.

As an integral part of the budget process, an accountability plan was implemented in 2008-09. Various metrics, including administrative cost levels, instructional effectiveness, and student success rates, are measured and reported annually to the Board during the July budget workshop.

Fiscal Impact: Fund balance at the conclusion of the 2014-15 fiscal year is projected to be

16.4% of annual expenditures, if the above recommended budget is adopted. Staff Resource: Dr. Steve Head

Cindy Gilliam 832-813-6515 832-813-6512

Financial Report and Consideration No. 4 (ACTION ITEM 4) Board Meeting 8-7-14 Request: CONSIDERATION OF ADOPTION OF A RESOLUTION

APPROVING THE EXPANSION & REMODELING OF THE FACILITIES OF THE MONTGOMERY CENTRAL APPRAISAL DISTRICT


That the Board of Trustees adopts a resolution approving the expansion & remodeling of the facilities of the Montgomery Central Appraisal District.

Rationale: The Board of Directors of the Montgomery Central Appraisal District

have approved, by Resolution on April 24, 2014, to authorize the expansion and remodeling of facilities of the appraisal district, subject to approval by the governing bodies of three-fourths of the taxing units entitled to vote on the appointment of board members. The Lone Star College System of Montgomery County, Texas, has been certified by the Chief Appraiser of the Montgomery Central Appraisal District (MCAD) as being eligible and entitled to vote on the appointment of directors of MCAD. Failure to approve the resolution and return it to the Chief Appraiser will result in a “no” vote.

Fiscal Impact: Lone Star College System’s proportionate share of the MCAD budget is

4.3%. The potential cost to LSCS of this project based on the proportionate share would be $170,400 and would be included in the quarterly billings for appraisals. The billings are funded by both the general operating and the debt service funds. The annual appraisal district fees are included in the recommended 2014-15 budget.

Staff Resource: Cynthia Gilliam 832-813-6512

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Financial Report and Consideration No. 4 (ACTION ITEM 4) Board Meeting 8-7-14 Request: CONSIDERATION OF ADOPTION OF A RESOLUTION

APPROVING THE EXPANSION & REMODELING OF THE FACILITIES OF THE MONTGOMERY CENTRAL APPRAISAL DISTRICT


That the Board of Trustees adopts a resolution approving the expansion & remodeling of the facilities of the Montgomery Central Appraisal District.

Rationale: The Board of Directors of the Montgomery Central Appraisal District

have approved, by Resolution on April 24, 2014, to authorize the expansion and remodeling of facilities of the appraisal district, subject to approval by the governing bodies of three-fourths of the taxing units entitled to vote on the appointment of board members. The Lone Star College System of Montgomery County, Texas, has been certified by the Chief Appraiser of the Montgomery Central Appraisal District (MCAD) as being eligible and entitled to vote on the appointment of directors of MCAD. Failure to approve the resolution and return it to the Chief Appraiser will result in a “no” vote.

Fiscal Impact: Lone Star College System’s proportionate share of the MCAD budget is

4.3%. The potential cost to LSCS of this project based on the proportionate share would be $170,400 and would be included in the quarterly billings for appraisals. The billings are funded by both the general operating and the debt service funds. The annual appraisal district fees are included in the recommended 2014-15 budget.

Staff Resource: Cynthia Gilliam 832-813-6512

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Financial Report and Consideration No. 5 (ACTION ITEM 5) Board Meeting 8-7-14 Request: AN ORDER AUTHORIZING THE ISSUANCE OF LONE STAR

COLLEGE SYSTEM LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014; PROVIDING FOR THE AWARD OF THE SALE THEREOF IN ACCORDANCE TO SPECIFIED PARAMETERS; AUTHORIZING THE REDEMPTION AND/OR DEFEASANCE PRIOR TO MATURITY OF CERTAIN OUTSTANDING BONDS OF LONE STAR COLLEGE SYSTEM AND AUTHORIZING THE CHANCELLOR AND/OR VICE CHANCELLOR FOR ADMINISTRATION AND FINANCE/CHIEF FINANCIAL OFFICER TO TAKE ALL NECESSARY STEPS TO CAUSE THE REDEMPTION AND/OR DEFEASANCE OF SUCH BONDS; AND ENACTING OTHER PROVISIONS RELATED THERETO


That the Board of Trustees approves the order authorizing the issuance of Lone Star College System Limited Tax General Obligation Refunding Bonds, Series 2014 and the redemption and/or defeasance of certain outstanding debt with available funds of the System.

Rationale: The System has approximately $72 million in outstanding bonds which

were previously issued to fund certain capital projects. Collectively, the bonds are outstanding at an interest rate of about 5%. This debt can be refinanced with current interest rates of about 3%, which would produce debt service savings for the System. The parameter order allows the staff to identify the optimal time to issue the proposed refunding bonds to secure current interest rates, while also complying with related call provisions of the outstanding bonds, as some refunding candidates are eligible to be refunded as of the date hereof, while others become callable within the next few months. The System anticipates refunding up to $72,060,000 in outstanding bonds that meet certain parameters, which is expected to produce a 6% or greater present value savings.

Fiscal Impact: If all of the $72 million in refunding candidates were refunded in the

current market, the System would save approximately $8.3 million (in today’s dollars) or 11.5% of $72 million.

Staff Resource: Cindy Gilliam 832-813-6512

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Financial Report and Consideration No. 6 (ACTION ITEM 6) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Science Supplies,

Equipment and Instructional Chemicals for the System Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of science supplies, equipment and instructional chemicals for the System from the attached list of vendors for an estimated amount of $600,000 annually and a not-to-exceed amount of $3,000,000 over five years. If science supplies, equipment and instructional chemicals are not available from the listed vendors, they may be purchased from vendors under contract with approved cooperatives.

Rationale: In June 2013, the Board awarded purchasing agreements to four

vendors for these instructional materials for a five-year period in the amount of $3,000,000. On several occasions, best value or supplies and equipment weren’t available from these vendors. An RFP was again issued in order to gain a larger pool of vendors to supply these instructional materials. Science supplies, equipment and instructional chemicals are used to support the curriculum in biology, chemistry, physics and geology programs at each campus. Supplies include preserved and living specimens, prepared slides, petri-dishes, rocks and other miscellaneous supplies. Equipment includes microscopes, hot plates, models, glassware and other miscellaneous equipment. Instructional chemicals include acetic acid, ethyl ether, hydrochloric acid, acetone, sodium bicarbonate, potassium bitartrate, sulfuric acid, zinc sulfate and other specialized chemicals for use in the labs. This purchase is in compliance with Texas Education Code §44.031. A Request for Proposals (RFP #323) was advertised and issued to 55 science supplies, equipment and instructional chemicals vendors and 14 responses were received. Vendor proposals were evaluated based on cost, qualifications experience/service needs met, other relevant factors, quality of services/quality plan, past performance, extent of certified historically underutilized businesses (HUB), minority and/or veteran and women owned businesses utilized, long term cost and vendor reputation. It is recommended that purchasing agreements be approved with all 14 vendors to ensure the best value instructional materials are available when needed. Three of the four vendors awarded purchases in the original RFP process responded to the new RFP and are included on the attached vendor list. The term of these agreements will be for two years beginning

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September 2014 with the option to renew for three additional one-year periods based upon mutual consent. The renewal options may be subject to reasonable price increases based on vendor justification and approval by the System. The estimated amount of purchases is based on historical data over the previous 12-month period. The previous agreements will be terminated and new ones initiated under the current RFP process.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2014-15

operating budget. Funds for subsequent years will be included in future proposed budgets.

Staff Resource: Keri Rogers

832-813-6597

Financial Report and Consideration No. 7 (ACTION ITEM 7) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase an Echocardiography Machine

for the Echocardiography Program at LSC-CyFair


That the Board of Trustees approves the purchase of an echocardiography machine for the Echocardiography program at LSC-CyFair in the amount of $122,004 from GE Healthcare, 9900 Innovation Drive, Wauwatosa, WI 53226.

Rationale: Laboratory instruction is imperative to the success of the Echocardiography program students. The purchase of this equipment will promote consistent classroom instruction and ease of training for students in the Echocardiography lab. This equipment is in virtually every hospital Echocardiography department in Houston. Purchasing this machine will ensure that students have the opportunity to master anatomy and scanning techniques in a classroom lab before attempting the procedures in the hospitals. This purchase is in compliance with Texas Education Code §44.031. A Request for Proposals (RFP #327) was advertised and issued to seven (7) registered healthcare equipment vendors and two (2) responses were received from separate divisions of one company. One of the responses proposed two different options. Only one proposal had the product offering that met the specifications included in the RFP. The proposal meeting the specifications was evaluated based on cost, quality of equipment and vendor references, value-added options, the extent to which certified historically underutilized businesses (HUB), minority and/or veteran and women owned businesses are utilized and long-term cost to the System. It is recommended to purchase the only product option that meets the specifications. See the attached proposal evaluation tabulation. The recommended product option allows for optimal imaging capabilities for all patient types and provides ease of instruction for both faculty and students. The Vivid E9 machine is compatible with LSC-CyFair lab’s current image review station that allows students the opportunity to create echocardiography exam reports. It will further complement the training students receive by preparing them for advanced breakthroughs in the field of ultrasound. The 4D feature of this machine is needed to train and prepare students to be competitive in advanced technology that is currently available in echocardiography imaging. Students will be more effective earlier at their clinical sites

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since they will be training with the same equipment that they will be utilizing upon graduation and entering the workforce. Included in the price are a one-year warranty and three days of on-site training.

Fiscal Impact: Funds for this purchase are available from the approved FY 2013-14 operating budget.

Staff Resource: Audre Levy 281-290-3941

Financial Report and Consideration No. 8 (ACTION ITEM 8) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase X-Ray Equipment and

Accessories for the Medical Radiologic Technology (MRT) Program at LSC-Montgomery


That the Board of Trustees approves the purchase of x-ray equipment and accessories for the MRT program at LSC-Montgomery from Blue Ox Medical Technologies, 7845 Colony Road, Suite C4-327, Charlotte, NC 28226, in the amount of $115,800.

Rationale: Currently the LSC–Montgomery MRT program does not have a c-arm

surgical radiographic imaging equipment or laboratory. Other radiologic technology programs around Houston have c-arm surgical imaging x-ray equipment. This equipment is needed to provide laboratory instruction, simulation, and intensive hands-on exercises to students. These instructional activities and hands-on exercises will enable MRT students to develop and perfect surgical imaging skills, acquire the required entry-level skills before graduation and increase their chances of getting jobs upon graduation. MRT employers require students to be properly trained before graduating and applying for a job. Surgical imaging is also a skill-area identified as deficient in LSC-Montgomery graduates’ survey results.

This purchase is in compliance with Texas Education Code §44.031. A Request for Proposals (RFP #331) was advertised and issued to six (6) registered x-ray equipment vendors and two (2) responses were received. Vendor proposals were evaluated based on cost, quality of equipment and vendor references, value-added options, the extent to which certified historically underutilized businesses (HUB), minority and/or veteran and women owned businesses are utilized and long-term cost to the System. It is recommended to award the purchase to the vendor with the highest evaluation score. The recommended vendor’s equipment comes with the required specifications for laboratory instruction, simulation, and student hands-on exercises. This is also the equipment utilized by most hospitals and outpatient surgery centers within and outside LSCS’s service area and ensures that students will be trained with the same equipment they will most likely work with upon graduation. The accessories are required for protection from the potential hazards of ionizing radiation. The equipment has a projected useful life of 10 years, and included in the price is a five-year warranty and two days of on-site training.

Fiscal Impact: Funds for this purchase are available from the approved FY 2013-14

operating budget.

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Staff Resource: Austin Lane 936-273-7222

Financial Report and Consideration No. 9 (ACTION ITEM 9) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Workforce Equipment for the

Energy and Manufacturing Institute (EMI) at LSC-University Park Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of workforce equipment for the EMI at LSC-University Park from Mazak Corporation, 10950 Greenbend Blvd., Houston, TX 77067, in the amount of $229,300.

Rationale: A computer numerically controlled (CNC) lathe machine and a CNC

vertical mill center are needed to support the training offered at the EMI for energy, engineering, continuing education students and corporate clients. This purchase is in compliance with Texas Education Code §44.031. A Request for Proposals (RFP #272) was advertised and issued to twelve (12) registered energy and manufacturing equipment vendors and three (3) proposals were received for a lathe machine and a vertical mill center. Proposals were evaluated on cost, quality of equipment and vendor references, value-added options, the extent to which certified historically underutilized businesses (HUB), minority and/or veteran-owned businesses are utilized and long-term cost to the System. It is recommended to award the purchase to the vendor with the highest evaluation score. The recommended vendor provides an integrated control training system which meets the long term needs of LSCS students and faculty. In addition, this vendor will provide value-added features such as local 24/7 support, free upgrades, system certification of faculty and students, lifetime warranties and remote equipment operation.

Fiscal Impact: Funds for this purchase are available from the Revenue Bonds Series

2012B issued to fund the EMI building and related equipment. Staff Resource: Keri Rogers 832-813-6597

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Financial Report and Consideration No. 10 (ACTION ITEM 10) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Instrumentation Equipment for

the Oil and Gas and Automated Service Technician Programs at the Energy and Manufacturing Institute (EMI) at LSC-University Park


That the Board of Trustees approves the purchase of instrumentation equipment for the Oil and Gas and Automated Service Technician programs at EMI at LSC-University Park from Hampden Engineering Corporation, 99 Shaker Road, P.O. Box 563, East Longmeadow, MA 01028, in the amount of $284,733.

Rationale: Instrumentation and process control training equipment is required to

support the training offered for oil and gas and automated service technician credit and continuing education programs. The equipment will support hands-on training for enrolled students and those enrolled in customized corporate training programs. The acquisition of this equipment will support increased student enrollment in programs that align with industry/workforce needs, enhance the placement of graduates with hands-on technical training, and support the larger effort to promote science, engineering, technology and mathematic continuing education units and corporate college workforce education at LSCS. This purchase is in compliance with Texas Education Code §44.031 (a, 4) which allows the use of inter-local contracts. The purchase from Hampden Engineering Corporation is being conducted through the Texas Multiple Award Schedule purchasing cooperative contract No. 13-874070.

Fiscal Impact: Funds for this purchase are available from the State Energy

Conservation Office/Jobs and Education for Texans (SECO/JET) grant.

Staff Resource: Keri Rogers

832-813-6597

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Exhibit "N"

Financial Report and Consideration No. 11 (ACTION ITEM 11) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Engineering Equipment for

the Engineering Technology Petroleum Program at LSC-University Park


That the Board of Trustees approves the purchase of engineering equipment for the Engineering Technology Petroleum program at LSC-University Park from Advanced Technologies Consultants, Inc., 110 West Main Street, P.O. Box 905, Northville, MI 48167, in the amount of $157,409.

Rationale: Instrumentation and process control training equipment is needed to

support the training for engineering/engineering technology students, continuing education students and corporate training clients. This equipment is used in the petroleum field and is a necessary component of the hands-on training required for the AAS degree, Engineering Technology-Petroleum Field Service Technician. This purchase is in compliance with Texas Education Code §44.031 (a, 4) which allows the use of inter-local contracts. The purchase from Advanced Technologies Consultants, Inc. is being conducted through the South East Texas (SETX) purchasing cooperative contract No. 383210796.


operating budget. Staff Resource: Keri Rogers 832-813-6597

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Exhibit "O"

Financial Report and Consideration No. 12 (ACTION ITEM 12) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Library Materials, Supplies,

Services and Resource Sharing Membership Fees for FY 2014-15 Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of library materials, supplies, services and resource sharing membership fees for FY 2014-15 for the System’s libraries in an amount not-to-exceed $1,400,000. In addition, authorize the Chancellor or designee to execute any agreements related to these purchases.

Rationale: Library materials consist of serial and journal subscriptions (electronic

databases, digital content and information products), books, e-books and media. This purchase also includes library services (periodical jobber and binding services), library equipment and supplies; and library or resource-sharing program services provided by the Texas State Library and Archives Commission. The college system uses these materials and services to support faculty, staff and student needs. To obtain the best discount available, the college system will purchase books and non-print materials for college library collections through the Texas Procurement and Support Services (TPASS) cooperative purchasing contracts. The TPASS discounts substantially exceed any discount, including academic discounts, offered directly from a publisher, supplier or jobber. When materials are not available from an approved TPASS contract vendor, the library directors will obtain the materials through a method approved by state law and LSCS Board policy that offers the best value to the System.


operating budget. Staff Resource: Keri Rogers 832-813-6597

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Exhibit "P"

Financial Report and Consideration No. 13 (ACTION ITEM 13) Board Meeting 8-7-14 Request: Consideration of Approval to Authorize the Chancellor or Designee to

Negotiate and Execute a Contract to Purchase a Facilities Management Services Program for LSC-North Harris and Related Satellite Centers


That the Board of Trustees authorizes the Chancellor or designee to negotiate and execute a contract to purchase a facilities management services program for LSC-North Harris and related satellite centers from TD Industries, Inc., 13850 Diplomat Drive, Dallas, TX 77040, in an estimated amount of $15,080,000 over a five year period.

Rationale: LSC-North Harris has demonstrated a need to hire a facilities

management company to implement a management operations program at the main campus and the related satellite centers. Services include, but are not limited to, HVAC maintenance, water treatment services, generator maintenance, janitorial services, and lawn care services. The contractor shall provide all supplies, equipment, and skills necessary to complete all services. The contractor will manage any sub-contractors hired to perform non-self-performed tasks as specified in the Request for Proposals (RFP). LSC-North Harris will negotiate with the contractor hourly rates for replacement of staff positions that may become vacant as a result of attrition. In compliance with the provisions of Texas Education Code § 44.031, RFP #306 was advertised and issued to sixty two (62) registered facilities management service providers. A pre-proposal conference was held and nineteen (19) companies were represented. A total of six (6) responses were received. The evaluation of proposals was conducted based on the pricing, firm’s experience, relevant client references, quality of goods and services, past performance of the firm, extent to which certified historically underutilized businesses (HUB), minority and/or veteran or woman-owned businesses are utilized, long term cost, and other relevant factors. The companies with the top proposal evaluation scores were interviewed. It is recommended that the firm with the highest interview evaluation score be awarded the contract for these services. The contract term will be for an initial three-year period with an option to renew for two (2) additional one (1) year options based on mutual consent.


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Exhibit "Q"


Staff Resource: Penny Westerfeld 281-618-5444

Financial Report and Consideration No. 14 (ACTION ITEM 14) Board Meeting 8-7-14 Request: Consideration of Approval to Au thor i z e the Chancellor or

D e s i g n e e to Negotiate and Execute a Contract to Purchase Architectural Services for the LSC-East Aldine Satellite Center (Aldine) Contingent Upon Finalization of Funding


That the Board of Trustees authorizes the Chancellor or designee to negotiate and execute a contract for the purchase of architectural services for Aldine, contingent upon finalization of funding, with the highest ranked firm, Bay-IBI Group Architects, 455, East Medical Center Boulevard, Suite 500, PO Box 891209, Houston TX 77289. If negotiations cease for any reason with the 1st ranked firm, the System will proceed to negotiate with the 2nd ranked firm, Gensler.

Rationale: The proposed satellite center is estimated to be 60,000 square feet and

will provide workforce and academic preparation in an underserved community. The proposed site is along Aldine Mail Route, east of Aldine Westfield Road and is large enough to accommodate expansion if necessary in the future. The East Aldine Management District (economic development organization for the Aldine area) will donate approximately 16 acres to the System for the center. In compliance with the provisions of Texas Government Code 2254.004, a Request for Statement of Qualifications (RFQ #326) was publicly advertised and issued to one hundred and fifty (150) firms. A pre-proposal conference was held and thirty one (31) firms were represented. Twenty-two architectural firms subsequently responded to the RFQ. The initial evaluation of proposals was conducted based on the firm’s qualifications, references and relevant higher education experience, approach and methodology, experience of proposed personnel, extent to which certified historically underutilized businesses (HUB), minority and/or veteran or woman owned businesses are utilized and the completeness and thoroughness of the response. On-site presentations were made by the five (5) firms receiving the highest proposal scores. It is recommended that the firm with the highest on-site presentation score be awarded the contract for architectural services.

Fiscal Impact: Funds for this purchase are anticipated from the Federal New Markets

Tax Credit Program. Staff Resource: Cindy Gilliam 832-813-6512 Steve Head

832-813-6515

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Exhibit "R"

Financial Report and Consideration No. 15 (ACTION ITEM 15) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Additional Architectural Services

for LSC-University Park (LSC-UP) Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of additional architectural services in the amount of $250,000, bringing the total not-to-exceed amount for these services over the three year period to $1,750,000.

Rationale: A registered architect must prepare plans and specifications for any

alteration or addition to an existing building owned by the System when the construction costs exceed $50,000 and the alteration or addition requires removal, relocation, or addition of any walls or an exit. In addition, local jurisdictions require the approval of sealed and signed architectural plans before issuing building permits. At LSC-UP, renovations are required as educational and corporate tenants contract with LSC for space, and to accommodate future growth at the campus. On May 3, 2012, the Board of Trustees approved the purchase of architectural services for LSC-UP in the amount of $1,500,000 for a three year period. There have been more projects requiring architectural services than anticipated. The additional funds requested will allow the construction staff to undertake projects for the remaining term of the contract. The original purchase was in compliance with the provisions of Texas Government Code 2254.003 using Request for Statement of Qualifications #175.

Fiscal Impact: Funds for tenant related projects are available from auxiliary funds. Other

projects will be funded from operating budgets or bond funds, as appropriate. Funds for subsequent years will be included in future proposed budgets.


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Exhibit "S"

Financial Report and Consideration No. 16 (ACTION ITEM 16) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Additional Architectural Services

for Renovation Projects Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of additional architectural services for renovation projects in the amount of $400,000, bringing the total not-to-exceed amount for these services over the three year period to $1,000,000.

Rationale: A registered architect must prepare plans and specifications for any

alteration or addition to an existing building owned by the System when the construction costs exceed $50,000 and the alteration or addition requires removal, relocation or addition of any walls or an exit. In addition, local jurisdictions require the approval of sealed and signed architectural plans before issuing building permits. On May 3, 2012, the Board of Trustees approved the purchase of architectural services for renovation projects in the amount of $600,000 for a three year period. There have been more renovation projects throughout the system requiring architectural services than anticipated. The additional funds requested will allow the construction staff to undertake projects for the remaining term of the contract. The original purchase was in compliance with the provisions of Texas Government Code 2254.003 using Request for Statement of Qualifications #184.

Fiscal Impact: Funds for these services are available from the approved budgets of the

Repairs and Replacements, Operating and Construction funds. Funds for subsequent years will be included in future proposed budgets.


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Exhibit "T"

Financial Report and Consideration No. 17 (ACTION ITEM 17) Board Meeting 8-7-14 Request: Consideration of Approval of Annual Purchases of Construction and

Related Services for the System Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of construction and related services for the System in an amount not-to-exceed $10 million in FY 2014-15. In addition, authorize the Chancellor or designee to negotiate and execute any contracts related to these purchases.

Rationale: This pre-approval of annual purchases of construction and related

services for renovation, minor construction, bond and repair and replacement (R&R) projects is necessary to respond expeditiously to construction requirements for projects with specific scheduling constraints, or which may develop into an emergency if delayed. Approving the purchase of construction and related services in advance will enable staff to address schedule constraints and meet project delivery deadlines. The purchase of these services will be made in accordance with methods approved by state law and allowed by Board policy including, but not limited to, competitive bids, requests for qualifications and purchasing cooperative contract awards to area job order contractors. This request seeks approval for individual construction and related services purchases from $100,000 up to $750,000, and authorization to make collective purchases not-to-exceed $10 million in FY 2014-15. Purchases exceeding $750,000 will be presented to the Board individually for consideration of approval. To ensure the Board is regularly updated regarding the status of purchases made under this request, a project summary will be included in the Building and Grounds report each quarter.

Fiscal Impact: Funds for these purchases are included in the recommended FY 2014-15

operating, auxiliary, R&R and bond fund budgets. Staff Resource: Cindy Gilliam 832-813-6512

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Exhibit "U"

Financial Report and Consideration No. 18 (ACTION ITEM 18) Board Meeting 8-7-14 Request: Consideration of Approval of Annual Purchases of Technology Hardware,

Software and Services Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of technology hardware, software and services in an amount not to exceed $15,000,000 in FY 2014-15. In addition, authorize the Chancellor or designee to execute any agreements or statements of work related to these purchases.

Rationale: To enhance student success, LSCS has an aggressive plan to meet the

technology needs of faculty, staff and students. This pre-approval will enable the Office of Technology Services to acquire goods and services needed to upgrade enterprise systems and replace equipment that has reached end-of-life, as well as required consulting services. Over the last six fiscal years, this approach for technology purchases was able to save the college system 30% off the already negotiated cooperative purchasing program’s contract prices. Approving the technology hardware, software and services in advance will dramatically improve project schedules. In addition, the use of the various procurement methods for these purchases will enable faculty, students and staff to receive updated technology in the most timely and cost-effective method. The purchase of technology hardware, software and services will be made in accordance with:

• Texas Education Code 44.031, through competitive bid processes, or

• Texas Local Government Code, Subchapter F, Sections 271.101-102, through Board approved purchasing cooperatives (upon completion of market analysis), or

• Texas Government Code 2254.003, or • Any other method approved by state law.

To ensure the Board continues to have visibility of the technology purchases made under this request, a brief summary of purchases and savings will be submitted on a regular basis.


operating, technology and bond fund budgets. Staff Resource: Link Alander 832-813-6832

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Exhibit "V"

Financial Report and Consideration No. 19 (ACTION ITEM 19) Board Meeting 8-7-14 Request: Consideration of Approval to Renew Annual Insurance Policies for Fiscal

Year 2014-15 and Agreements for the Administration of Student Liability and Medical Insurance


That the Board of Trustees approves the renewal of the annual insurance policies for fiscal year 2014-15 with estimated premiums totaling $2.4 million, and the agreements for the administration of student liability and medical insurance.

Rationale: The System’s current insurance policies provide comprehensive liability,

property and casualty coverage. The System requested competitive quotes from all available insurance carriers in the market. Proposals were evaluated for the adequacy of the coverage terms, deductible options and annual cost. It is recommended that the Board approve the purchase of the following insurance policies for the period September 1, 2014 through August 31, 2015. In addition, a summary of all recommended policies is attached. SYSTEM-WIDE COVERAGE (RENEWAL) General Liability (Including Police, Professional, Child Care & Multimedia Liability) The policy, provided by the current and recommended carrier United Educators Risk Retention Group, Inc. (UE), includes a $1,000,000 combined single limit for bodily injury and property damage with an annual aggregate of $3,000,000. The UE policy provides broader comprehensive coverage than other available general liability policies in the market. The annual premium is $126.9 thousand, an increase of $4.9 thousand (4%) over the current premium. The increase is due to a general rate increase as well as an increase in the number of employees, students, vehicles and other property covered by the policy. (RENEWAL) Educators Legal Liability & Employment Practices Liability The policy, provided by the current and recommended carrier United Educators Risk Retention Group, Inc. (UE), includes professional liability coverage up to a limit of $5,000,000 for each claim with an annual aggregate coverage of $5,000,000. The self-insured retention is $100,000 per claim. The UE policy provides broader comprehensive coverage than other available professional liability policies in the market. The annual premium is $215.8 thousand, an increase of $16 thousand (8%) over the current premium. The increase is due to a rate increase, the number of

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Exhibit "W"

claims paid, as well as an increase in the number of employees covered under the policy. (RENEWAL) Excess Liability The policy, provided by the current and recommended carrier United Educators Risk Retention Group, Inc. (UE), provides up to $5,000,000 of coverage for claims in excess of the primary General Liability, Automobile Liability and Employer’s Liability policy limits. The annual premium is $115.3 thousand, an increase of $4.4 thousand (4%) over the current premium. The increase is due to a general rate increase as well as an increase in the number of employees, students, vehicles and other property covered by the policy. (RENEWAL) Medical Professional Liability (Dental Hygiene Clinic & Dentists at LSC-Kingwood) The policy, provided by the current and recommended carrier Evanston Insurance Company, includes professional liability coverage up to $1,000,000 with a $5,000 deductible for each claim and an annual aggregate coverage of $3,000,000. The current $18 thousand premium will not increase. (RENEWAL) Automobile Liability (Private Passenger & Light Commercial Vehicles) and Automobile Liability (Truck Driving Academy at LSC-North Harris) The policy, provided by the current and recommended self-insurance fund, Texas Political Subdivisions (TPS), provides coverage for the System’s vehicle fleet and for the vehicles used for instructional purposes by the Truck Driving Academy at LSC-North Harris. The automobile liability coverage provides a $1,000,000 combined single limit for bodily injury, property damage, and damage to rental vehicles. The collision and comprehensive coverage provides actual cash value of the property subject to a $1,000 deductible per occurrence. TPS is a joint self-insurance fund and the System will enter into an interlocal agreement with TPS to participate in the fund’s plan. The System’s portion of funding for the program is $145.9 thousand, an increase of $1 thousand (1%) over the current premium. The increase is due to an increase in the number of vehicles covered under the plan. (RENEWAL) Workers’ Compensation & Employer’s Liability The policy, provided by the current and recommended self-insurance fund, Texas Political Subdivisions (TPS), provides coverage for $1,000,000 bodily injury by accident and $1,000,000 bodily injury by disease (each employee), The bodily injury by disease coverage has a $1,000,000 policy limit. TPS is a joint self-insurance fund. An interlocal agreement with TPS will allow the System to participate in the fund’s plan. The annual payment to the fund is $524.3 thousand, an increase of

$17 thousand (3%) over the current premium. The increase in premium is due to an increase in the number of employees covered under the plan. (RENEWAL) Property (Fire & Extended Coverage) & Equipment Breakdown (Boiler & Machinery) The policy, provided by the current and recommended carrier Liberty Mutual Fire Insurance Company, provides coverage for the System’s real and personal property valued at approximately $1.1 billion, subject to a cumulative deductible for each occurrence of $25,000 for fire, $100,000 for flood, $100,000 for earth movement, $25,000 for breakdown of heating, air conditioning and electrical equipment and 2% of the value of covered property for wind damage associated with a named storm. This policy is subject to a $500,000,000 Real Property Loss Limit for any one occurrence. The sub-limit for extra expense coverage is $10,000,000. The annual premium is $1.2 million, a decrease of $46 thousand (-4%) over the current premium. (RENEWAL) Inland Marine The policy, provided by the current and recommended carrier Hanover Insurance Company, provides physical damage coverage for the actual cash value of scheduled mobile equipment subject to a $1,000 deductible per occurrence. The annual premium is $9.8 thousand, an increase of $3 thousand (46%) over the current premium. The premium increase is due to the increase in the quantity of equipment covered and the change in the valuation clause from actual cash value to replacement cost. (RENEWAL) Fine Arts & Small Museums The policy, provided by the current and recommended carrier ACE Fire Underwriters Insurance Company, provides coverage for fine art exhibitions at campus galleries with a limit of $500,000 for each loss. With the exception of outdoor sculptures, the deductible is $1,000 per claim. Outdoor sculptures have a $2,500 deductible. The current $1.1 thousand premium will not increase. (RENEWAL) Commercial Crime The policy, provided by the current and recommended carrier Great American Insurance Company, provides coverage for employee dishonesty, robbery and computer fraud. The policy limit is $1,000,000 for acts of employee dishonesty, forgery or alteration, loss of money and securities inside and outside the premises, computer fraud and funds transfer fraud. The deductible is $100,000 per occurrence. The annual premium is $11.6 thousand, a decrease of $4.4 (-28%) over the current premium. This decrease in premium reflects an increase in the deductible since there has not been any claim activity since 2004.

(RENEWAL) Foreign Travel Policy The recommended carrier, ACE American Insurance Company, provides a general liability policy of $1,000,000 for each occurrence of bodily injury and property damage with a $2,000,000 general aggregate limit. Coverage includes $1,000,000 for contingent automobile liability, $50,000 for hired automobile physical damage; $1,000,000 for voluntary compensation benefits, $1,000,000 coverage for executive assistance services, $100,000 coverage for accidental death & dismemberment, and $25,000 coverage for medical expenses. The annual premium is $4.7 thousand, an increase of $1.7 hundred (4%) over the current premium. The premium increase is due to an increase in rates. (RENEWAL) Kidnap and Ransom Insurance Policy The recommended carrier, Hiscox Insurance Company, Inc., provides worldwide ransom and kidnap coverage for directors, officers, trustees, employees, volunteers, students and interns. There is a limit of $5,000,000 for each insured event of ransom, loss-in-transit and additional expenses. The current $5.8 thousand premium will not increase. (RENEWAL) Travel Insurance (Out of the Country Medical Insurance, Study Abroad & Faculty International Explorations) The recommended carrier, ACE USA American Insurance Company, provides coverage for primary accident & sickness, emergency medical evacuation, repatriation of remains, emergency reunion, accidental death & dismemberment and 24-hour international emergency assistance for students, faculty and staff traveling outside the United States for study abroad or other educational purposes. The plan is administered by Academic Health Plans (AHP). The limit for accident or sickness expense benefits is $250,000 with no deductible per covered accident or sickness. The annual premium is $6.9 thousand, a decrease of $5 hundred (-7%) over the current premium. STUDENT COVERAGE Policies are made available to students that provide medical professional liability insurance for participation in health occupation internships, health insurance for international students on F-1 visas, and health insurance for student interns when required by an affiliation agreement. Premiums for sponsored study-abroad programs are paid from the System’s approved budgets. Students desiring to participate in one or more of the other available insurance programs remit payment when registering for class(es). Student premium collections are forwarded to the appropriate agent, broker, or insurance carrier. It is recommended that the Board approve the following products for students:

(RENEWAL) Medical Professional Liability The current and recommended carrier, Chicago Insurance Company, provides a policy for medical professional liability of $1,000,000 for each incident with a $3,000,000 aggregate for students participating in health occupation internships. The coverage is for claims arising out of real or alleged malpractice when the injury claimed is the result of professional error, accident, or omission. The $12 premium per student is a decrease of $5 (42%) over the current per student premium. (RENEWAL) Medical Insurance (International Students on F-1 Visas and Student Interns) The current and recommended carrier, ACE American Insurance Company, provides in-patient and out-patient medical expense benefits for injury and sickness with a limit of $500,000 per covered person per policy year. Students attending LSCS on F-1 Visas are required to have medical insurance. In addition, the majority of the System’s health occupations affiliation partners require student interns to carry medical insurance in order to participate in the program. The plan is administered by Academic Health Plans (AHP). The annual health insurance premium is $1.6 thousand, an increase of $1 hundred (6%) over the current premium.

Fiscal Impact: Funds for insurance policy premiums paid by the System are included in

the recommended FY 2014-15 System budgets. Staff Resource: Cindy Gilliam

832-813-6512

Financial Report and Consideration No. 20 (Agenda Item 20) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Printing and Mailing Services,

Including Postage, for the Star and Silver Star Newsletters Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of printing and mailing services, including postage, for the Star and Silver Star newsletters for an annual amount of $185,000 and a total of $924,000 over five years from the vendors listed below. Trend Offset Printing $83,000 Printing Services Premier IMS $28,000 Mailing Services United States Postal Service $74,000 Postage

Rationale: The twelve-page Star newsletter is mailed in March and September and

provides a source of information about LSCS activities to all System residents and taxpayers. The eight-page Silver Star newsletter is mailed in October to residents age 65 and older in LSCS’s service area and addresses topics specific to those stakeholders. Mailing services include providing updated residence counts for each zip code, and preparing, packaging and delivering the newsletters to the post office. The annual postage cost is based on a non-profit periodical rate. This purchase is in compliance with the provisions of Texas Education Code 44.031 (a). A Request for Proposals (RFP #313) was publically advertised and issued to nineteen registered print and mail bidders and four responses were received. Bidders were evaluated based on qualifications and experience, services meeting System needs, references, quality of services, the extent to which certified historically underutilized businesses (HUB), minority and/or veteran and women owned businesses are utilized, long-term cost to the System and other relevant factors. It is recommended that the purchase be awarded to the bidder with the highest proposal evaluation score for each service. See attached proposal evaluation tabulation. The term of the award will be for a period of three years beginning August 2014, with the option to renew for two additional one-year terms at LSCS’s discretion and with mutual consent.



Staff Resource: Ray Laughter 832-813-6621

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Exhibit "X"

Financial Report and Consideration No. 21 (ACTION ITEM 21) Board Meeting 8-7-14 Request: Consideration of Approval to Authorize the Chancellor or Designee to

Negotiate and Execute a Contract for the Purchase of System-Wide On-Demand Tele-Med Health Care Access Services for Employees


That the Board of Trustees authorizes the Chancellor or designee to negotiate and execute a contract for system-wide on-demand tele-med health care access services for employees from AmeriDoc, LLC, 14785 Preston Road, Suite 935, Dallas, Texas 75254, in an estimated annual amount of $350,000 for a total estimated cost of $1,050,000 over three years.

Rationale: LSCS is in need of a technology platform that can securely connect

employee/patients with U.S. based, board certified physicians for medical consultations via telephone, secure video, and secure e-mail. AmeriDoc physicians are available 24/7/365 to diagnose many common conditions and recommend treatment plans including non-controlled prescription medication as necessary. These services will be offered to employees and their families at no cost to them, can be accessed from anywhere in the U.S. and are expected to significantly reduce employee health care costs. AmeriDoc provides these services to numerous governmental entities in Texas and in the U.S and is known for its outstanding customer service. LSCS will be the first community college in Texas to provide these services to its employees. Participation rates are high for this program at 37% to 50% versus the industry average of 20% to 25%. This purchase is in compliance with the requirements of Texas Education Code 44.031 (a, 4) which allows the use of inter-local contracts. The purchase of AmeriDoc’s tele-med services is being conducted through the Texas Cooperative Purchasing Network (TCPN) contract #R132005. Once the agreement is signed with AmeriDoc, a letter will be distributed to all employees explaining the program with instructions regarding how to utilize the service. The employee will be asked to provide some initial information regarding their health history prior to receiving the service, but this is a simple process that can be done at the time the first service request is made. The commitment of System time and resources to implement these services is minimal. Responsible staff will be required to complete a one page implementation form and send employee enrollment information initially with monthly updates thereafter. The contract will be in effect until terminated by either party with 60 days’ written notice.

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Exhibit "Y"




Financial Report and Consideration No. 22 (ACTION ITEM 22) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Access Control Card Readers for

LSC-CyFair Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of access control card readers for LCS-CyFair from Stanley Convergent Security Solutions, 6699 Portwest Road, #100 Houston, TX 77024, in the amount of $241,250.

Rationale: LSCS has equipped each of its campus facilities with access control card

readers to promote safety of staff, faculty, and students. LSC-CyFair has inventoried each building and identified several that do not meet the new safety security standard for card reader systems adopted by the System.

The contractor will be responsible for designing, furnishing, installing and commissioning an access control system for LSC-CyFair’s buildings. This purchase is in compliance with the Texas Education Code §44.031 (a, 4) which allows the use of inter-local contracts. The purchase from Stanley Convergent Security Solutions is being conducted through the Texas Multiple Award Schedule (TMAS) purchasing cooperative contract No. 78-84080.


operating budget. Staff Resource: Audre Levy 281-290-3941

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Exhibit "Z"

Building and Grounds Report Board Meeting 8-7-14 Report: Construction Projects Update

The District’s Facilities Planning and Construction Department has provided a

summary report of the District’s construction projects. See attached report.

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Exhibit "aa"

Monthly Facilities Planning and Construction Report August 7, 2014

2013 Revenue Bond Project Summary

LSC-Creekside Satellite Center ♦ The Construction Manager at Risk has secured sub-contractor bids for the project and

the Guaranteed Maximum Price will be presented at the September Board of Trustees meeting for approval.

LSC-Fairbanks Center - Parking Garage Addition ♦ Precast concrete erection is complete with finishes and final connections currently

underway. The garage will be open for parking on schedule for the fall semester.

LSC-CyFair - Parking Lot Addition ♦ Construction is underway and is scheduled to be complete in time for the fall

semester.

LSC-CyFair - Renovations ♦ Construction of the photography/darkroom studio is underway and is scheduled to be

complete in time for fall semester.

LSC-University Park – Central Plant Upgrade ♦ Installation and commissioning of the new equipment is expected to be completed by

the end of August.

LSC-System Office – HVAC System Upgrades ♦ The bidding process commenced in July and a contractor will be selected in August.

Construction will be scheduled to occur over extended weekends and holiday periods since the air conditioning in the buildings will be impacted.

LSC-System Office – Community Building Office Renovations

♦ Construction documents have been completed and the bidding process is underway. Contractor selection will be finalized in early August.

2014 Federal New Markets Tax Credit Program Project Summary

LSC-East Aldine Satellite Center ♦ Architectural design firms have been interviewed and a recommendation is included

as an August Board of Trustees agenda item. ♦ A request for proposals (RFP) for Construction Manager at Risk services has been

issued. Shortlisted firms have been interviewed and a recommendation will be made at the September Board of Trustees meeting for consideration of approval.

♦ A request for qualifications (RFQ) for geotechnical firms has been issued. A recommendation will be presented at the September Board of Trustees meeting for consideration and approval.

Personnel Report and Consideration No. 1 (ACTION ITEM 23) Board Meeting 8-7-14 Request: Consideration of Ratification of Appointments.


That the contractual appointments listed on the following pages be ratified for the positions indicated.

Rationale:

These contractual appointments include ratification of Administrators and Faculty from LSC–North Harris, LSC-Montgomery, LSC-System Office and LSC-Tomball

Fiscal Impact:

Positions and salaries have been budgeted for 2013-2014.

Staff Resource: Rand Key 832-813-6522

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Exhibit "bb"

a. LSC–North Harris

Crystal Allen, Assistant Professor, Education Effective: 12 month contracted employee at an annual salary of $17,723 beginning

June 1, 2014 Education: Ph.D., Higher Education Administration, Texas A&M College; M.A.,

Organization Management, University of Phoenix; B.S., Health, Prairie View A&M

Experience: Adjunct Professor, Human Development, LSC–North Harris; Adjunct

Professor, Education Administration, Senior University Recruiter, Assistant to Dean, Recruitment and Retention, Prairie View University; Enrollment Counselor & Academic Advisor, University of Phoenix

Daria Willis, Dean, Instruction Effective: 12 month contracted employee at an annual salary of $86,192 beginning

June 16, 2014 Education: Ph.D., Philosophy, Florida State University; M.S., History, B.A., History

Education Florida A&M University Experience: Associate Professor, History, LSC-University Park; Adjunct Instructor,

History, African American Studies, Florida A&M University; Adjunct Instructor, History, Tallahassee Community College; Task Force, African American History, State of Florida; Training Facilitator, Clara White Museum, Florida African American Heritage Preservation; Tutor, CARE PROGRAM, Florida State University; Museum Education Program Representative, Museum of Florida History

b. LSC–Montgomery

Brandy Harvey, Dean, Instruction Effective: 12 month contracted employee at an annual salary of $86,192 beginning

June 1, 2014 Education: Ph.D., M.A., English, University of Louisiana; B.S., English, University

of Southern Mississippi Experience: Instructor, English, Nicholls State University; Adjunct Instructor, English,

L. E. Fletcher Technical Community College; Secondary English Educator, Diocese of Houma; Middle School Educator, Lafourche Parish Schools

c. LSC–Tomball

Ronnie Pickard, Executive Director, College Relations Effective: 12 month contracted employee at an annual salary of $84,502 beginning

June 23, 2014 Education: B.S., Finance, Louisiana Tech University Experience: Manager, Marketing and Corporate Communications, Service Corporation

International; Director, Strategic Communications, Director, Community & Business Affairs, Houston Airport System; Director Marketing & Air Service Development, Baton Rouge Metropolitan Airport; Director, Strategic Communications & Public Relations, Knight Broadcasting; Managing Director, Public Affairs & Media Relations, Calzone & Associates; Director, Public Relations & Media Advisor, State of Louisiana – Office of Lieutenant Governor

d. LSC–System Office

William Dodd, Director, Purchasing Effective: 12 month contracted employee at an annual salary of $95,170 beginning

June 16, 2014 Education: B.S.B.A., McNeese State University Experience: Director, Purchasing and Records Management, University of Texas; Site

Director, Materials, Trico Technologies, Procurement Manager, Flextronics; Materials Director, Purchasing Manager, Input/Output, Inc.

Personnel Report and Consideration No. 2 (ACTION ITEM 24) Board Meeting 8-7-14 Request:

Consideration of Resignations


That the resignations listed below be accepted and acknowledged. LSC – CyFair James Brown, Professor, Political Science Effective May 1, 2014 Feleccia Moore Davis, VP, Instruction Effective August 31, 2014 LSC – Kingwood Kathleen Atkins, Director, Advising/Counseling Effective May 16, 2014 LSC – North Harris Janice Hemphill, Professor, AD Nursing Effective June 1, 2014 Elizabeth King, Professor, AD Nursing Effective June 1, 2014 Judith King, Professor, AD Nursing Effective July 1, 2014 LSC – Montgomery Kris Chapman, Professor, Music Effective June 23, 2014 LSC - System Office Marla Diers, Sr. HR Manager Effective May 15, 2014 LSC – University Park Thomas Rogers, Assistant Professor, Sociology Effective June 1, 2014 Jessica Weisel, Professor, Speech Effective May 31, 2014

Staff Resource:

Rand Key 832-813-6522

kalovejoy

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Personnel Report and Consideration No. 3 (ACTION ITEM 25) Board Meeting 8-7-14 Request: Consideration of Approval of Commissioning of Peace Officers Chancellor’s That the Board of Trustees approves the commissioning of the following Recommendation: peace officers for the Lone Star College System.

Lone Star College–Kingwood

Stephen M. Holle

Lone Star College–North Harris

Joe D. Love

Lone Star College–University Park

Patricia G. Vidito

Rationale: These officers are eligible to be commissioned by this Board because they:

1. Have a current license from the Texas Commission on Law Enforcement Officer Standards and Education;

2. Have taken and filed the oath required of peace officers; and 3. Possesses a sufficient number of college credit hours to meet the

minimum standard for a Lone Star College System peace officer. Fiscal Impact: None Staff Resource: Rand Key 832-813-6522

kalovejoy

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Documents

Lone Star College - MINUTES OF THE PUBLIC HEARING AND ...€¦ · lone star college system . central services and training center . training and development center board room . 5000