Call to Order
The meeting was called to order at 5:40 p.m.
Roll Call
Present:
Canady,
Heywood, Holden, Jeffries, Rasmusson
Absent:
Pelleran
Trustee Pelleran arrived at 7:08 p.m.
Trustee Heywood asked for a moment of silence to
be observed in honor of those that were lost in the space shuttle
Columbia.
Limited Public Comment Regarding Agenda Items
Glenn Kirk - Members of the Board, President
Cunningham.
I just want to
take a couple of minutes to say I addressed you here a week or so ago
and told you what a great organization and a great college that I
think we have here in Lansing.
And
how much I love this institution and what it stands for and what it
does for Lansing and the Lansing community.
Tonight is a very special occasion for this college and for
this Board because tonight you're going to be just a little bit
better because of the addition and what it represents and what it
symbolizes about pulling all people in.
I commend you.
I
thank you personally and I thank the good people of the Lansing area.
You did a great thing.
Oath of Office Marylou Mason - The Honorable Justice Michael F.
Cavanagh
Marylou Mason took the Oath of Office and was
sworn in by the Honorable Justice Michael Cavanagh of the Michigan
Supreme Court.
Election of Vice Chairperson
IT WAS MOVED by Trustee Heywood and supported by
Trustee Mason to elect Trustee Holden to serve as the vice chairperson
of the Board.
Ayes:
Canady,
Heywood, Holden, Jeffries, Mason, Rasmusson
Nays:
None
Absent:
Pelleran
Motion carried.
Presentation to Board of Trustees and Staff
President Cunningham presented a plaque to the
Board and Lansing Community College staff.
She said a similar plaque would be going up in each new
facility that will be built in the next three or four years.
President Cunningham stated that many times we wait until the
facility is built and we recognize the people who are here at that
time.
However, this has
been such a collaborative effort over the last few years in spite of
the budget cuts and everything else that is going on.
When we reflect internally about the collaborative effort, the
teamwork, the Board support of the strategic plan, the millage, the
staff support, how the unions all worked together and made this
possible for the buildings to go up, they all should be recognized in
terms of the work they have done.
She read the plaque aloud, ?in appreciation for Lansing
Community College Board of Trustees and the outstanding staff who
championed this instructional building as a center for teaching and
learning.
Their vision for
this facility as an environment for students to succeed reflects their
commitment to our community and its future.?
It has the names of all the Trustees that were involved at that
time.
Resolutions of Apology
Chairperson Jeffries stated that Trustee Pelleran
indicated she was going to be late.
Therefore, he would delay this agenda item to be discussed
later.
Election Resolution
President Cunningham stated that the election
resolution is required to notify all public bodies that an election is
going to take place.
IT WAS MOVED by Trustee Canady and supported by
Trustee Mason to approve the election resolution.
Ayes:
Canady,
Heywood, Holden, Jeffries, Mason, Rasmusson
Nays:
None
Absent:
Pelleran
Motion carried.
Risk Management Resolution
President Cunningham stated that in the absence
of the Vice President of Finance, Barbara Larson, the college has to
designate someone else to be the designee for Middle Cities Risk
Management.
The
College's recommendation is to have Glenda West as the designee.
IT WAS MOVED by Trustee Holden and supported by
Trustee Heywood to accept the risk management resolution.
Ayes:
Canady,
Heywood, Holden, Jeffries, Mason, Rasmusson
Nays:
None
Absent:
Pelleran
Motion carried.
Budget Update
President Cunningham stated that when the
strategic plan was developed the college was preparing for less
dependency on state appropriations.
At that time approximately 41% of the College's budget
consisted of funds from the state.
When the college passed the millage it reduced the dependency
by 9% to 10%.
Had the
college not reduced its dependency and considering that state
appropriations will be reduced, it would be more difficult to balance
the budget.
The College is
prepared to meet those cuts, but there has to be some drastic changes
in the way business is done.
Vice President Glenn Cerny gave a PowerPoint
presentation regarding the budget update (the presentation is on file
with the official Board materials).
Bond Resolution
President Cunningham stated that the Board
received in their packet a resolution authorizing the additional
$16,295,000 for bonds (the resolution is on file with the official
Board materials.)
She said
that the college held off going out for additional bonds because the
college hoped to receive capital outlay funds, but she has been
informed that the chances of that are unlikely.
The issuance of bonds is needed in order to complete the
millage promises that were made.
President
Cunningham asked Mr. Bill Danhof, from Miller, Canfield, Paddock and
Stone, to further discuss the resolution.
Mr. Danhof stated that the resolution is for new
money issue of $16,295,000 and not to exceed that amount.
A refinancing piece for the 1994 bonds was added if there is
savings to be recovered by refinancing that will be accomplished at
the time these bonds are sold.
There
are other items in the resolution relating to the bonds.
He reminded the Board that the bonds are the first budget
obligation of the college.
They
are secured by the College's full faith and credit.
The recommendation has come from a financial advisor to
underwrite these issues with UBS Paine Webber.
Mr. Danhof stated that a subsequent resolution would have to be
adopted by the Board to actually sell the bonds once those matters are
finalized.
This resolution
before the Board tonight would put the College in a position where
staff could prepare everything for the sale such as securing ratings.
He said that interest rates are very attractive right now.
Chairperson Jeffries asked when the sale would
take place.
Mr. Cerny stated that the recommendation from
Stauder, Barch, and Associates is to move forward within the next
month or so.
Trustee Canady asked what would be the cost of
servicing this debt considering the budget situation.
Mr. Cerny responded that one of the things that
is embedded in the budget scenario just discussed is the servicing of
the bonds.
Trustee Canady asked if a review has been
completed regarding the construction projects in terms of what
absolutely has to be completed.
He
asked if anything could be delayed to save money.
President Cunningham responded that a review has
been completed.
She stated
that everything is similar to a trickle down effect in terms of
vacating one building and moving into another.
The healthcare careers facility cannot be built until the
administration building is torn down.
To stop the process would mean to stop everything.
She said that everything is phased in and if you stop now then
the College would renege on the promises from the millage.
Chairperson Jeffries said that what triggered
this is that there was some expectation that the college would receive
capital outlay dollars and that didn?t come through.
He stated that the Board had discussions about this
approximately two years ago when the Board initially looked at selling
bonds and these were held back pending what was going to happen with
the capital outlay process.
IT WAS MOVED by Trustee Holden and supported by
Trustee Heywood to accept the resolution authorizing the issuance of
bonds.
Roll call vote:
Ayes:
Canady, Heywood,
Holden, Jeffries, Mason, Rasmusson
Nays:
None
Absent:
Pelleran
Motion carried.
Resolutions of Apology
Chairperson Jeffries stated that Trustee Pelleran
still hadn?t arrived; however, it was necessary for the Board to
consider this agenda item.
Three
resolutions are before the Board of Trustees (the resolutions are on
file with the official Board materials.)
Included in the Board packet were letters of apology, but those
are for informational purposes only.
He stated that the resolutions would be acted upon separately.
IT WAS MOVED by Trustee Mason and supported by
Trustee Heywood to approve the resolution of apology for Ms. Beckie
Beard.
Trustee Canady stated that he would be abstaining
from voting on all three resolutions.
He said that he certainly agrees with providing a resolution of
apology, but each of the resolutions contains certain language that he
does not subscribe to.
He
felt that the resolutions do not necessarily reflect what transpired.
He offered his apology to everyone and agrees an apology is
appropriate and he doesn?t want to vote no; therefore, he will be
abstaining from all three votes.
Roll call vote:
Ayes:
Heywood, Holden,
Jeffries, Mason, Rasmusson
Nays:
None
Absent:
Pelleran
Trustee Canady abstained.
Motion carried.
IT WAS MOVED by Trustee Rasmusson and supported
by Trustee Mason to approve the resolution of apology for Mr. Glenn
Cerny.
Roll call vote:
Ayes:
Heywood, Holden,
Jeffries, Mason, Rasmusson
Nays:
None
Absent:
Pelleran
Trustee Canady abstained.
Motion carried.
IT WAS MOVED by Trustee Mason and supported by
Trustee Holden to approve the resolution of apology for Mr. Lee
Whipple.
Roll call vote:
Ayes:
Heywood, Holden,
Jeffries, Mason, Rasmusson
Nays:
None
Absent:
Pelleran
Trustee Canady abstained.
Motion carried.
Closed Session
IT WAS MOVED by Trustee Canady and supported by
Trustee Heywood for the Board to go into closed session for the
purpose of discussing an attorney/client privileged communication and
labor discussions.
Roll call vote:
Ayes:
Canady, Heywood,
Holden, Jeffries, Mason, Rasmusson
Nays:
None
Absent:
Pelleran
Motion carried.
The Board entered into closed session at 6:25
p.m.
Roll call vote to return to open session:
Ayes:
Canady, Heywood,
Holden, Jeffries, Mason, Pelleran, Rasmusson
Nays:
None
Absent:
None
The Board returned to open session at 7:08 p.m.
Public Comment
There were no comments from the public.
Chairperson Jeffries stated that in September of
2002 he informed the Board of the possibility of appointing Trustee
Heywood as the liaison with the Principal Shopping District.
He said that he recently received notification from the
Principal Shopping District approving that appointment.
Adjournment
The meeting was adjourned at 7:09 p.m.
