Minutes
Alamo Community College District
Regular Meeting of the Board of Trustees
George E. Killen Community Education & Service Center
201 W. Sheridan
San Antonio, Texas
January 24, 2006

CALL TO ORDER AND ROLL CALL

Chairman Conner called the meeting to order at 6:32 p.m. and announced that a quorum of trustees was present.

The following trustees were present:
District 1 Dr. Bernard K. Weiner
District 2 Denver McClendon
District 3 Jennifer Ramos, Assistant Secretary
District 4 Marcelo S. Casillas
District 5 Roberto Zárate, Vice Chairman
District 6 Dr. Gene Sprague
District 7 Charles J. Conner, Chairman
District 8 Gary Beitzel, Secretary

The following trustee was absent:
District 9 James Rindfuss

CERTIFICATION AND POSTING OF NOTICE

Chairman Conner announced that the notice of the Board meeting had been duly posted at the District Office Building, Northwest Vista College, San Antonio College, Northeast Campus, St. Philip's College and at Southwest Campus, Palo Alto College, and the Alamo Community College District George E. Killen Community Education & Service Center fulfilling the requirements of the statutes as set forth.

CITIZENS TO BE HEARD

Mr. Mike Villarreal asked to speak during the discussion of agenda item 18.

EXECUTIVE SESSION

Chairman Conner stated that the meeting would adjourn into Executive Session under the statutes providing for such Executive Session at 6:33 p.m.

RECONVENE OPEN MEETING

Chairman Conner reconvened the meeting into Open Session on Tuesday, January 24, 2006 at 7:41 p.m.

INVOCATION

The invocation was given by Janice E. Wilson, Education Specialist II, Northeast College.

MEMORIALS

Dr. Derrico announced the recent passing of an active employee.

Employee Department Service Years
Claude O. Gause Counseling & Guidance, SAC 1968- 2005

RECOGNITION OF SPECIAL GUESTS, FACULTY, AND STAFF

Dr. Claunch introduced a Government class from Northwest Vista College. Melissa Christopher, NVC student, thanked the board for the opportunity to witness government in action.

Dr. Zeigler recognized Professor Emeritus Ricardo A. Salinas, Department of Mathematics/Computer Science and Professor Emeritus Sammye J. Smith, Department of Kinesiology. Associate Professor Emeritus David S. Sanchez, Department of Mathematics/Computer Science was honored posthumously with the title of Professor Emeritus. David Sanchez accepted the award on behalf of his father.

Geraldo Guerra, Multimedia Specialist, Business Department, received the ACCD District Wide Employee of the Month award. He was recognized for his loyal and dedicated service to students, faculty and staff throughout the college. Dr. Zeigler stated that Mr. Guerra is a highly motivated individual who can be counted on to complete various tasks.

1. REGULAR BOARD MEETING ON DECEMBER 13, 2005

On a motion by Trustee Zárate, seconded by Trustee Dr. Weiner, and by unanimous vote of the Board, the following minute order was adopted:

“The minutes of the Regular Meeting of the Board of Trustees of the Alamo Community College District held on December 13, 2005 are hereby approved as amended.”

2. SPECIAL BOARD MEETING ON DECEMBER 1, 2005

On a motion by Trustee Dr. Weiner, seconded by Trustee Ramos, and by unanimous vote of the Board, the following minute order was adopted:

“The minutes of the Special Meeting of the Board of Trustees of the Alamo Community College District held on December 1, 2005 are hereby approved as corrected.”

3. ETHICS HOTLINE SUMMARY ACTIVITY REPORT - OCTOBER THROUGH DECEMBER 2005

Dr. Derrico presented the Ethics Hotline Summary report for October – December 2005. Trustees Dr. Weiner and McClendon encouraged all faculty, staff, and students to utilize the hotline if they witness inequities and fraud throughout the district.

4. MONTHLY REPORTS OF THE VICE CHANCELLORS, COLLEGE PRESIDENTS, DISTRICT DIRECTORS, AND GENERAL COUNSEL

Dr. Derrico presented the monthly reports of the Vice Chancellors, College Presidents, District Directors, and General Counsel.

5. PRESENTATION ON THE BANNER PROJECT BY DR. CHARLES BURMEISTER

Dr. Burmeister provided a PowerPoint presentation on the Banner Progress Report which included: Highlights of Accomplishments; Performance of Major Components; Operational Challenges; Finance & Purchasing Implementation Summary; Project Modifications; Processed Transactions; Proposed Budget; Budget vs. Expenditures; and Implementation Schedule. Dr. Derrico commended Dr. Burmeister for the good work that is documented in his report.

6. ACCD CITIZENS’ BOND OVERSIGHT COMMITTEE APPOINTMENTS

Trustee Dr. Sprague stated that the organization and operation of the Citizens’ Oversight Committee was approved at the January 19, 2006 Special Board meeting.

On a motion by Trustee Dr. Sprague, seconded by Trustee Dr. Weiner, and by unanimous vote of the Board, the following minute order was adopted:

“The Board of Trustees hereby approves the attached named individuals to serve a term of one year on the Citizens’ Bond Oversight Committee.”

7. PROGRAM HIGHLIGHTS – PLANNING AND PREPARATION; PROGRAMS AND PARTNERSHIPS; PEOPLE; PRINCIPLES - NORTHEAST COLLEGE

Dr. Reno gave a presentation on the Northeast College. The Northeast College promises its communities a full spectrum of educational opportunities; exciting and innovative academic, social, and cultural options; and a standard of excellence in all that it has to offer.
Dr. Reno also reported on the Planning and Preparations (accreditation process); Programs & Partnerships; People (Hiring Plan); and Operating Principles.

On a motion by Trustee Beitzel, seconded by Trustee McClendon, and by unanimous vote of the Board, agenda items 8 – 15 were adopted.

8. RECOMMENDATION FOR ADOPTION OF PROPOSED LOCAL POLICY CM – FACILITIES CONSTRUCTION

Trustees Dr. Sprague and Beitzel discussed the importance of this policy specifically pertaining to “Communication with Contractors.”

”Proposed Local Policy CM – Facilities Construction (Attachment 1) is adopted as presented. Upon adoption this policy supersedes all previous versions of Local Policy CM.”

9. RECOMMENDATION FOR ADOPTION OF PROPOSED LOCAL POLICY CDE - ACCOUNTING: FINANCIAL ETHICS

“Proposed Local Policy CDE – Accounting: Financial Ethics (Attachment 1) is adopted as presented. Upon adoption this policy supersedes all previous versions of Local Policy CDE.”

10. RECOMMENDATION FOR ADOPTION OF PROPOSED LOCAL POLICY CB - DEPOSITORY OF FUNDS

“Proposed Local Policy CB – Depository of Funds (Attachment 1) is adopted as presented. Upon adoption this policy supersedes all previous versions of Local Policy CB.”

11. RECOMMENDATION FOR ADOPTION OF PROPOSED LOCAL POLICY DEF - COMPENSATION AND BENEFITS: RECOGNITION AND AWARDS

“Proposed Local Policy DEF – Compensation and Benefits: Recognition and Awards (Attachment 1) is adopted as presented. Upon adoption this policy supersedes all previous versions of Local Policy DEF.”

12. RECOMMENDATION FOR ADOPTION OF LOCAL POLICY CKB - INSURANCE AND ANNUITIES MANAGEMENT: LIABILITY

“Proposed Local Policy CKG – Insurance and Annuities Management: Liability Insurance (Attachment 1) is adopted as presented. Upon adoption this policy supersedes all previous versions of Local Policy CKB.”

13. RECOMMENDATION FOR DELETION OF LOCAL POLICY CAH - APPROPRIATIONS AND REVENUE SOURCES: SHORT-TERM NOTES

“Proposed Local Policy CAH– Appropriations and Revenue Sources: Short-Term Notes (Attachment 1) is hereby deleted.”

14. RECOMMENDATION FOR DELETION OF LOCAL POLICY CDD - ACCOUNTING: PAYROLL PROCEDURES

“Local Policy CDD – Accounting: Payroll Procedures (Attachment 1) is hereby deleted.”

15. RECOMMENDATION FOR DELETION OF LOCAL POLICY CDDA - PAYROLL PROCEDURES: SALARY DEDUCTIONS

“Local Policy CDDA – Payroll Procedures: Salary Reductions (Attachment 1) is hereby deleted.”

16. FINANCIAL REPORTS

On a motion by Trustee Zárate, seconded by Trustee Ramos, and by unanimous vote of the Board, the following minute order was adopted:

“These financial reports are hereby accepted as presented.”

17. ACCEPTANCE OF ANNUAL EXTERNAL AUDIT REPORT FOR ACCD

On a motion by Trustee McClendon, seconded by Trustee Beitzel, and by unanimous vote of the Board, the following minute order was adopted:

”The Annual External Audit Report for the fiscal year ended August 31, 2005 of the Alamo Community College District audited by Garza/Gonzalez & Associates, CPA’s, is hereby accepted as recommended by the Audit, Budget & Finance Committee.”

18. DISCUSSION AND POSSIBLE ACTION ON PROPOSALS FOR SELECTION OF MUNICIPAL BOND UNDERWRITING SERVICES FOR THE ACCD (RFP #06A-031)

Mike Villarreal, SAMCO Capital Markets representative, stated that the company’s RFP application was not scored in the same manner as other applications. The RFP requires applicants to submit a letter from an insurance agent stating that either the securities firm holds errors and omissions insurance or that they would be able to access errors and omissions insurance. SAMCO was not able to provide such letter. The organization is a clearing agent and its insurance policy is a financial institutions bond worth $10,000,000. He asked the staff to score the application the same as the other applications. Mr. Villarreal stated he would be available for further discussion.

Dr. Derrico stated that there were several other proposers who did not meet this same qualification on the RFP, and all were disqualified. Trustee McClendon stated that the request will be taken under advisement with the Audit, Budget and Finance Committee.

On a motion by Trustee Zárate, seconded by Trustee Beitzel, and by unanimous vote of the Board, the following minute order was adopted:

“The selection of a pool of underwriting firms for the issuance of $450,000,000 in General Obligations Bonds and other incidental financings which may occur during the life of the pool for Municipal Bond Underwriting Services, (RFP No. 06A-031) is hereby accepted as recommended by the Audit, Budget & Finance Committee. The firms are as follows:

A.G. Edwards Capital Markets Morgan Stanley
Banc of America Securities, LLC Popular Securities
Cabrera Capital Markets, Inc. Ramirez & Co., Inc.
Estrada Hinojosa Investments Bankers RBC Capital Markets
J.P. Morgan Chase & Co. Siebert Brandford Shank & Co., LLC
Loop Capital Markets Southwest Securities Public Finance
M.E. Allison & Co., Inc. UBS Financial Services, Inc.
Morgan Keegan & Company Inc.

The life of the underwriting pool will extend through the original issuance of the $450,000,000 in General Obligation Bonds, currently estimated to be February 2009, but may, at the District’s option, be extended up to two additional one (1) year terms beyond the final issuance of the $450,000,000 authorization.”

19. DISCUSSION AND POSSIBLE ACTION ON SELECTION OF THE UNDERWRITING SYNDICATE FOR INITIAL SALE OF $62,000,000 IN GENERAL OBLIGATION BONDS, MUNICIPAL BOND UNDERWRITING SERVICES FOR THE ACCD (RFP #06A-031)

On a motion by Trustee Beitzel, seconded by Trustee Zárate, and by unanimous vote of the Board, the following minute order was adopted:

“The selection of the following firms from the Board-approved pool, Municipal Bond Underwriting Services, RFP #06A-031, to underwrite the sale of up to $62,000,000 in General Obligation Bonds, currently anticipated to occur in February 2006 is hereby accepted as recommended by the Audit, Budget & Finance Committee. The firms are as follows:

Senior, Book-Running Manager Morgan Stanley
Co-Senior Manager Southwest Securities
Co-Manager Cabrera Capital Markets, Inc.
Co-Manager Loop Capital Markets, LLC”

20. DISCUSSION AND POSSIBLE ACTION ON SELECTION OF BOND COUNSEL (RFP #06A-033)

On a motion by Trustee McClendon, seconded by Trustee Zárate, and by unanimous vote of the Board, the following minute order was adopted:

“The firm of Fulbright & Jaworski as Bond Counsel (RFP #06A-033) for a period of four years with an option to have three (3) one (1) year renewals, and until all legal requirements are completed for the sale of all bonds related to the approved bond election is hereby accepted as recommended by the Audit, Budget & Finance Committee.”

21. APPROVAL OF THE REPORT SUBMITTED BY DELOITTE & TOUCHE ON INTERNAL AUDIT

On a motion by Trustee Beitzel, seconded by Trustee Dr. Sprague, and by unanimous vote of the Board, the following minute order was adopted:

“The ACCD Board of Trustees hereby approves the Report submitted by Deloitte & Touche on Internal Audit.”

22. APPROVAL OF THE CONSENT AGENDA OF THE REGULAR BOARD MEETING ON JANUARY 24, 2006

On a motion by Trustee Dr. Sprague, seconded by Trustee Beitzel, and by unanimous vote of the Board, the following minute order was adopted:

“The Consent Agenda for the Regular Board of Meeting of the Alamo Community College District Board of Board of Trustees held on January 24, 2006 is hereby approved.”

Agenda Items Include: *23, *24, *25, *26, *27, *28, *29, *30 and *31.

23. APPOINTMENT OF FULL TIME FACULTY, ADJUNCT FACULTY AND CONTINUING EDUCATION FACULTY AT THE COLLEGES OF THE ACCD

“Selection of full-time faculty for 2005-2006 academic year, to commence the spring semester January, 2006 as submitted by the Presidents of the Alamo Community College District and shown on the attached list(s), is hereby approved.

The appointment of adjunct and continuing education faculty is submitted by the College Presidents and shown on List No. 5 for the 2005-06 year is hereby approved. Further Board action will not be required for these persons to teach in the indicated disciplines. Employment of adjunct and continuing education faculty is contingent upon the instructional needs of the college.”

24. ORDER CALLING FOR AN ELECTION OF THREE SINGLE-MEMBER DISTRICT TRUSTEES OF THE ALAMO COMMUNITY COLLEGE DISTRICT

“In accordance with the attached Order, the Alamo Community College District Board of Trustees calls for an election to be held on May 13, 2006 and a runoff election if necessary on June 17, 2006 to elect three single-member district trustees No. Five (5), No. Six (6) and No. Seven (7) of the Alamo Community College District Board.”

25. MONTHLY REPORT ON COOPERATIVE PURCHASES IN EXCESS OF $50,000.00.

“The cooperative purchase report for December 2005 is hereby accepted.”

26. MONTHLY REPORT ON FINANCIAL STATUS OF 2004 MAINTENANCE TAX NOTES

This is an informational item on the Financial Status of 2004 Maintenance Tax Notes.

27. MONTHLY REPORT ON STATUS OF PROJECTS FUNDED BY 2004 MAINTENANCE TAX NOTES

This is an informational item on the Status of Projects Funded by 2004 Maintenance Tax Notes.

28. MONTHLY REPORT ON STATUS OF NORTHEAST COLLEGE TAX REVENUE SET ASIDE

This is an informational item on the Status of Northeast College Tax Revenue Set-Aside.

29. MONTHLY REPORT OF STATUS OF 2001, 2003 AND 2004 BOND CONSTRUCTION FUNDS

This is an informational item on the Status of 2001, 2003, and 2004 Bond Construction Funds.

30. APPROVAL AND RATIFICATION OF BUDGET AMENDMENT REPORT AND BUDGET TRANSFER REPORT

“Budget transfers and/or amendments as they appear on the Budget Amendment Report and Budget Transfer Report are hereby approved.”

31. REQUEST FOR ACCEPTANCE OF PRIVATE GIFTS, NON-GOVERNMENT GRANTS AND GOVERNMENT GRANTS TO THE ALAMO COMMUNITY COLLEGE DISTRICT

“The Alamo Community College District Board of Trustees hereby accepts the non-governmental gifts and grants (private and public) made to the Alamo Community College District as of DECEMBER 1, 2005 through DECEMBER 31, 2005.”

EXECUTIVE SESSION

Chairman Conner announced that the meeting would adjourn into Executive Session under the statutes providing for such Executive Session at 9:25 p.m.

RECONVENE OPEN MEETING

Chairman Conner reconvened the meeting into Open Session on Tuesday, January 24, 2006 at 10:03 p.m.

On a motion by Trustee Zárate, seconded by Trustee Dr. Sprague, and by unanimous vote of the Board, the ACCD Board of Trustees authorizes the board chairman to execute the agreement between Alamo Community College District and Dr. J. Terence Kelly as discussed in Executive Session.

On a motion by Trustee Zárate, seconded by Trustee McClendon, and by unanimous vote of the Board, the Alamo Community College District Board of Trustees accepts Dr. J. Terence Kelly’s resignation effective January 31, 2006.

On a motion by Trustee Beitzel, seconded by Trustee Zárate, and by unanimous vote of the Board, Chancellor J. Terence Kelly is hereby awarded the title of Chancellor Emeritus effective January 31, 2006.

On a motion by Trustee Dr. Sprague, seconded by Trustee Zárate, and by unanimous vote of the Board, the Alamo Community College District Board of Trustees approves the temporary increase of special pay for the Acting Chancellor to a level commensurate with an annual salary of $210,000. The term of this increase shall remain in effect during his tenure as Acting Chancellor.

Trustee Zárate thanked Dr. Derrico for his patience and hard work. Dr. Derrico stated that it was an honor for him to serve as Acting Chancellor for the Alamo Community College District and for this Board of Trustees.

SETTING OF NEXT MEETING

A Regular Meeting of the Board of Trustees is scheduled for Tuesday,
February 21, 2006, at the George E. Killen Community and Education
Service Center, 101 Community Meeting Room, 201 West Sheridan.

 

ADJOURNMENT

There being no further business, the meeting was adjourned at 10:03 p.m.

Approved for submission to the Board:

___________________________________
Dr. Daniel R. Derrico
Acting Chancellor

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Prepared by:
Sandra T. Mora
Administrative Assistant