Call to Order
The meeting was called to order
at 5:04 p.m.
Roll Call
Present: Canady, Heywood,
Holden, Jeffries, Patterson, Pelleran, Rasmusson
Absent: None.
Additions/Deletions to the Agenda
There were no additions or
deletions to the agenda.
Limited Public Comment
Regarding Agenda Items
There were no comments from the
public.
Chairperson and Board Member
Reports
Chairperson
Appointment of M-TEC/Bond
Committee - Chairperson Jeffries stated that there are two purposes for
the M-TEC and Bond committee. One purpose is to work with staff to
develop site recommendations for the M-TEC. The second purpose is
to work preliminarily, on a short-term basis, on bond rates, amounts,
and timeframes and develop recommendations to the Board.
Chairperson Jeffries appointed
Trustees Patterson, Pelleran and himself to the M-TEC and Bond
committee.
Board Member
Trustee David Patterson –
Association of Community College Trustees – Trustee Patterson stated
that he received a letter regarding his appointment to the Member
Communications Committee of the Association of Community College
Trustees. He distributed the letter to the members of the Board
(the letter is on file with the official Board materials.) He
thanked the Board for their support.
Trustee KP Pelleran – Star
Institute Recruitment Effort - Trustee Pelleran reported on the STAR
Institute recruitment effort. She complimented Toni Glascoe and
her staff on the excellent work in recruiting high school students for
the Star Institute. She said that they have a real strong
recruitment effort in reaching out to the high schools in the Lansing
area. The outlying areas are also participating in the Star
Institute.
Trustee Pelleran stated she
attended the Women’s Chorus on Sunday, December 9 and thought it was a
tremendous program. She encouraged everyone to attend next year.
Trustee Pelleran complimented the staff and students for their
outstanding performance.
Trustee Olga Holden –
Foundation Board – Trustee Holden reported that the Foundation Board
has embarked upon a strategic planning process. The Foundation has
selected Ms. Sue Stratton as their strategic planning consultant.
Trustee Holden said that there was a work session regarding what is the
relationship with the College as a whole and in relation to this Board.
She said that the process would involve the Lansing Community College
Board of Trustees participating in focus groups.
President Cunningham reported
that the Foundation Board has a timeline of March or April in having the
plan up and running.
Trustee Pelleran complimented the
Foundation Board for a wonderful Holiday Open House.
President Cunningham reported
that $5,000 was reimbursed to the Foundation from the excess funds from
the millage campaign.
President’s Report
Informational
Human Resources
Appointments—
Faculty—
Jeffrey Huber, Faculty
Member, Fire Science, Human Health and Public Services Division
Resignations—
Administrative-
Robert Bentley, Dean, Student and
Academic Support Division
Dr. Thomas L. Franke, Dean, Information Technology and Research
M-TEC
President Cunningham reported
that hopefully there would be a decision made regarding the M-TEC site
by the end of this year.
Action Items
Approval of Minutes - November
14, 2001 Special Meeting and November 19, 2001 Regular Meeting
There were no changes to the
minutes.
Finance
Bond Presentation and Resolution
– President Cunningham stated that the resolution before the Board
would allow the College to move forward with the exploration of selling
of bonds.
Vice President Barbara Larson
stated that with the passage of the millage the College has the
opportunity to move forward with the Facilities Master Plan. The
College has bond capacity of over $74 million based on the formula from
the Michigan Community College Act. She introduced Mr. Paul
Stauder from Stauder, Bauch & Associates, Inc. Vice President
Larson stated that Mr. Stauder prepared two scenarios. The first
scenario is a 15-year payment schedule and the second scenario is a
20-year payment schedule both assuming a 5-¼ % interest rate. The
repayment schedule is connected with what the College can afford.
Vice President Larson introduced Mr. William Danhof, from Miller,
Canfield, Paddock and Stone, who drafted the resolution before the
Board.
Mr. Stauder gave the bond
presentation and timeline to the Board. (The presentation is on
file with the official Board materials.) He distributed a
document, which is a transaction his company completed for Jackson
Community College. (The document is on file with the official
Board materials.)
Chairperson Jeffries asked if the
sale with Jackson Community College was a negotiated sale.
Mr. Stauder responded that it was
a competitive sale. It was an 11-year amortization period on the
bonds and the interest rate was 4.36%. He estimated that 20-year
financing to be about 5% and 15-year financing would approximately be
4.7%.
Mr. William Danhof stated that
the Board has a resolution in their packet, which authorizes the
parameters of the issuance of these bonds. It is necessary that
the resolution be passed and a formal resolution authorizing the actual
sale of the bond will be brought back for the Board’s approval.
The resolution will start the selection process of an underwriter and
various parameters are also being worked on. He said that the
bonds are the first budget obligation of the College as provided by
State law.
Trustee Patterson asked Mr.
Danhof if the resolution triggers the pricing and the sale of the bonds.
Mr. Danhof responded no and they
will come back to the Board for the sale. But essentially it will
trigger the pricing of bonds, such that the committee will come back
with a final price and the final interest rate.
Trustee Patterson asked if this
would be completed before the first of February.
Mr. Danhof responded it is
scheduled to come back to the Board at the February meeting. It is
scheduled to be completed by February 5, 2002.
Mr. Stauder stated that they
would probably come back to the Board with a recommendation at the
January meeting because it would be closer to the point where the bonds
would be priced and a much better handle on any changes in the
marketplace that might impact this authorization. It is expected
that administration set more defined parameters by mid-January.
The resolution allows the College to approach the State to get through
the treasury approval process, which can take several weeks and prepare
other components of the transaction.
President Cunningham stated that
the two scenarios, which are included as informational purposes, are
very close to mirroring what was communicated during the millage
campaign.
Trustee Holden asked if
furnishings are considered capital improvement.
Vice President Larson responded
yes. The numbers that were presented to the Board in terms of the
51.5 million dollars included a projection of 20% for furniture and
equipment.
Trustee Holden asked when would
the State be deciding on the College’s request for matching funds for
phase one.
Vice President Larson responded
that generally the capital outlay bills are drafted in June, but
sometimes the State will make decisions on the capital outlay by the
December holiday.
Trustee Holden asked if the
College should decide to bond for the full amount it is allowed and the
State grants the request, what will the College do with the money.
President Cunningham responded
that phase three would probably be implemented earlier.
IT WAS MOVED by Trustee Canady
and supported by Trustee Patterson to approve the President’s Report
as presented.
Ayes: Canady, Heywood,
Holden, Jeffries, Patterson, Pelleran, Rasmusson
Nays: None
Absent: None
Motion carried.
Closed Session
IT WAS MOVED by Trustee Patterson
and supported by Trustee Holden to go into closed session for the
purpose of discussing a labor issue.
Roll call vote:
Ayes: Pelleran, Rasmusson,
Canady, Heywood, Holden, Jeffries, Patterson
Nays: None
Absent: None
Motion carried.
The Board went into closed
session at 5:37 p.m.
The Board returned to open
session at 6:28 p.m.
Public Comment
There were no comments from the
public.
Adjournment
The meeting was adjourned at 6:28
p.m.
