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Adopted Minutes
October 30, 2000

Special Board Meeting

Call to Order

The meeting was called to order at 6:35 p.m.

Roll Call

Present: Creamer, Holden, Jeffries, Patterson, Pelleran, Rasmusson
Absent: Canady

Trustee Canady arrived at 6:42 p.m.

Additions/Deletions to the Agenda

There were no additions or deletions to the agenda.

Limited Public Comment Regarding Agenda Items

There was no limited public comment.

Chairperson and Board Member Reports

Facilities Master Plan Report

Trustee Patterson stated the Board of Trustees unanimously approved a strategic plan in June of this year. One of the reasons for the strategic plan was to set forward a process to come up with a master plan. It is certainly important to do this kind of planning so we can best serve our college and students for years to come. This five-year master plan is also a requirement of the State of Michigan, and the College must submit the plan to the State by November 21st. This facilities master plan is crucial for us to receive future outlay in the capital expenditures. The college received 50% funding on the Technology and Learning Center in 1993. Trustee Patterson acknowledged and thanked the other members of the subcommittee, Chairperson Jeffries and Trustee Pelleran. Additionally, he thanked Barbara Larson, Bill Darr, and all of the members of the master plan task force.

Vice President Barbara Larson, Bill Darr, and Joe Miller, architect from Hobbs & Black, gave a presentation on the Facilities Master Plan. (A copy of the presentation is on file with the official Board materials.)

Trustee Holden asked if the old SPS building will hold classrooms and if so, what classes would be held there.

Vice President Larson answered that it will hold eight general classrooms and two computer classrooms beginning Spring semester.

Trustee Holden asked if any of the programs could be assigned there.

Vice President Larson answered, yes.

Trustee Holden said that there was talk about renovating Carnegie Library. She wanted to know if it was being discussed to renovate to it's original state.

Vice President Larson answered, no. One of the things, it didn't have originally was an elevator, and we would need to put an elevator in, if it was going to be used for offices on a regular basis. Certainly the Carnegie Library looks more like it did when it was built than Old Central.

Trustee Canady stated it seems scenario one is really dependent on the extension of the M-TEC. Is General Motors okay with that?

President Cunningham stated that ever since the Board sold the airport property to one of the suppliers, CTI, they have committed us to 20 acres, either close to or on the other side of General Motors. Those 20 acres will allow us to do all of this.

Chair Jeffries asked Bill Darr if the 20 acres would be enough space to do what the recommended proposal states.

Mr. Darr said, yes it would be enough space.

Trustee Holden wanted to know if it is realistic for the State, since some of the master plan includes new construction, that the College can get half of the funding of the $51 million dollars that are needed.

Vice President Larson said that the College was funded for the TLC building and that was a $25 million project. There have been larger projects since then. Grand Rapids had a $30 million project. This would be the largest, but she thinks it is possible.

President Cunningham stated the College is also looking for partners. They are not just banking on M-TEC and the additional money from the state. Health Careers, for example, finding organizations that can come to the table and bring resources with them.

Trustee Holden wanted to know how much money the College has in capital.

Vice President Larson said there is $5.4 million reserved for capital outlay, and also $900,000 that the Board has for appropriations, recognizing we had to address Old Central.

Chair Jeffries asked if in the analysis of all of the buildings, are there any buildings that the College can sell, any properties such as Kalamazoo.

Vice President Larson said yes, the warehouse is one piece of property that if the College converted the first two floors of AOF, that would meet Holden Hthe College's storage needs so we could sell the Kalamazoo property.

Chair Jeffries wanted to know what the fair market value is.

Vice President Larson said it was appraised at $405,000.

Chair Jeffries stated that the sub-committee has completed its work. He thanked Trustee Patterson, and Trustee Pelleran for the time they put in. Additionally he thanked former Trustee Jim Byrum, and Trustee Holden for the work they put into this project. He particularly wanted to thank the staff and a number of people, faculty and staff that attended those meetings throughout the summer, particularly Friday mornings at 7:45 a.m. This is something the Board has been looking forward to for a long time. He thinks it will be very helpful to the College not only in the state appropriation, but also critical for understanding the budget and where to go from here. This was an informational item only. This will be coming back to the November Board meeting for action. If any of the Board members have any questions or concerns, he asked them to bring them forward before the November meeting.

President's Report

Lansing M-TEC Report - Consultants William Mothersell and Michael Moore gave the Board a report on the Lansing M-TEC. (A copy of the presentation is on file with the official Board materials.)

The Executive Summary and Recommendations are as follows:

Macro Demand Factors for the M-TEC

Our analysis of recent economic reports and other available information indicates that the Malibu car line will be integrated into current production in 2000, the Lansing Grand River Assembly Plant will open in 2001, the Regional Stamping Center will open in 2002, and the Delta "Platinum" Plant will open in 2003. The economic impact of locating the three new facilities in the Lansing area is expected to create about 18,000 jobs (20% manufacturing and 80% nonmanufacturing), with significant spin-off activities (e.g., purchases from local suppliers, increased spending, etc.). More specifically, the location of the new GM plants in Lansing is expected to result in approximately 20 new auto suppliers to locate in the area between 2000 and 2003, with projections as high as 50 over the next several years.

There are some concerns regarding the full utilization of an M-TEC given the small manufacturing employment base in the Lansing region (i.e., 12% in the Lansing area vs. 22% State average). Growth in manufacturing employment is anticipated given the expected increase in suppliers locating in this area. As such, increased training capacity will be needed to support these new suppliers.

While there are also some concerns with the current economic outlook (i.e., the length of the current economic expansion), the overall economic trends are positive for the immediate future. The Lansing area will benefit from receiving the first new auto plants built by GM in the United States since it created Saturn Corporation located in Spring Hill Tennessee in 1985. The creation of a M-TEC is seen as an important incentive to encourage other supplier firms to locate in new facilities in the Lansing area. The current expansion, projected growth, and current economic trends is expected to fuel demand for technical and manufacturing-related skills and training and thus enables this M-TEC to play a foundation role in creating the quality and quantity of the Lansing area workforce.

Demand for the training provided by the M-TEC is likely to meet and exceed the capacity as projected within the current $4 million building grant and estimated square footage. Meeting this excess demand will be addressed in alternative scenarios.

Recommendations

Recognize Viable Alternatives

LCC Possesses Leadership and Context Expertise

Need to Build collaborative/Partnership Capacity within LCC and with Employers and Community Leaders

Strong Support Needed from the Board

Accept the Challenge of Creating a World-Class M-TEC

Trustee Holden asked if GM would be able to dictate whether we can put an LCC Vo-Tech Center at the M-TEC site.

President Cunningham said in terms of the complete duration we will make that collaboratively whether it is actually inside, whether it is a portion or a wing of the M-TEC, or something built outside or very close it to. That is something that would be talked about collaboratively. They asked us earlier about deal breakers. That is one that we put down as a potential deal breaker.

Trustee Holden asked the consultants if they believe we can readily reconcile this open entry open exit issue. 

Dr. Mothersell said he thinks the start point is to offer something open entry, open exit, he thinks that is going to be required. After that point what is going to be required is a balanced approach that says, learn as we go, are employers demanding it and you will have a balanced approach that emerges over time where it fits both

Trustee Holden said she recalled the Board, when they were talking about Livingston County, did not have a hand choosing the M-TEC board.

President Cunningham said she thinks this Board has to have ultimate responsibility for the fiscal operations of the M-TEC. Ultimately they have to have some input into that, in terms of who is serving on the M-TEC Board and that make up. That might be a different question, but in terms of fiscal responsibility, I don't know how the Board could resolve themselves from that.

Trustee Holden said the Board can't, but it is the ultimate responsibility that they have. That was a contention with the Board, that they didn't have much say in some of that make up, but yet had the fiscal responsibility.

Trustee Holden had a question on the training and education. Typically an education course covers the vital 80% of knowledge and leaves the final 20% to on-the-job or local training. LCC instructors can often provide the final 20% through specific training contracts with firms. Past experience would indicate that many firms are resistant to paying the full cost of training such highly specific knowledge for learning applications. She wanted to know if this suggests that when it comes to customize training the employers want it for generic prices or through grants.

Dr. Moore said that is a good summary of it. LCC is a good educational institution. It provides the basics of a course. In building 66 and 242 training centers run by General Motors they are proud that they are training centers. That they can take it 100% of the way, they can explain exactly how to pull a core out a specific machine, a specific building, a specific location and train to that level of detail. So back to education, in doing contract training, often employers would love to have LCC faculty develop a course that would do exactly what their employees needed but they may only have two or three for the course, or one or two, so they have to be part of a class with a larger group as the course is assembled so they can't get all the customization they want. LCC's faculty could do it if they were asked to, but experience is that employers don't want to pay that final price to get things exactly right. They rather say get the basic skills and we will train them on-the-job back at our building. It could be a pricing matter, we just found employers to be resistant to pay the full cost of customized training in technical areas. 

Olga Holden said the Board's experience in Livingston county was that even though LCC was providing the facility and resources, the employers wanted to access the by having someone write grants for the actual cost of the training. She wanted to know if that is what the consultants found in the Lansing community, as well.

Dr. Mothersell answered, yes. Once they learn they can find grant money for the training, that is the way they want to go. He sees that as an advantage of working with LCC because they have the capacity to write the grants, they have access to the grant money and developed expertise in this area. It refers back to what employers want and what they are willing to pay for. To do that last 20% is very labor extensive and expensive.

Dr. Moore stated they would not be recommending the M-TEC if it had to be funded solely by employers of Lansing. They are very small. The manufacturing sector in Lansing is much smaller than in Flint or Grand Rapids, smaller firms, this really requires General Motors as a partner, then all things are possible. But, the smaller employers simply look for grants where they have learned to look, and ask LCC to write grants for them.

Chair Jeffries said the College has been told that we have to get the application in by the first of the year. Time is very short and if we are going to be in that position to be a strong negotiator on these issues, when should LCC expect to have some direction from GM in terms of what we need to put in the application.

Dr. Mothersell said the difficulty is not knowing exactly when GM will come up with the final approval. We expect it the next month, or week, or even the next day, we have been that close at times and it never occurs. I think the reality is, from GM's perspective, they can get that additional time from the State to make their decision.

Dr. Moore added that the President's office has a grant or proposal writing team all ready to go, and the actual draft proposal has a lot of good points in it, so he thinks something could move very fast from the internal management of the College, but right now the only official time we have is the 2nd of January.

President Cunningham thanked Dr. Moore and Dr. Mothersell for the amount of time and energy they put in over and above, they have done an outstanding job. Also, she wanted to publicly thank General Motors, they have been extremely responsive. They returned phone calls, they allowed us in their plant, we visited the training facility in Lansing, the Saturn facility in Springfield, Tennessee, and have been very responsive and a joy to work with. Additionally, she thanked the Board for the support and patience with this entire project as in the past they continue to be extremely supportive as we move this and ask appropriate questions. For those interested there will be a final copy of this report in our office by Wednesday, it is quite extensive and we need to make a copy and will have a copy in the office by Wednesday or Thursday this week.

Trustee Patterson wanted to acknowledge Bob Bentley and WLNS. He can actually get the College radio station now that the signal has been increased. WLNS is the voice of this college and it is a good station. 

Public Comment

There was no public comment.

Adjournment

IT WAS MOVED by Trustee Canady and supported by Trustee Patterson to adjourn the meeting.

Ayes: Canady, Creamer, Holden, Jeffries, Patterson, Pelleran, Rasmusson
Nays: None.
Absent: None.

Motion carried.

The meeting adjourned at 7:50 p.m.



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