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Adopted Meeting Minutes
Special Meeting

February 4, 2003

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.

LCC Board of Trustees
Administration Bldg
Phone: (517) 483-5252
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