Regular Meeting of the Board of Trustees Lone Star College System Including Public Hearing 2016-2017 Proposed Budgets Training A

Home , Lone Star College System

REGULAR MEETING OF THE BOARD OF TRUSTEES LONE STAR COLLEGE SYSTEM INCLUDING PUBLIC HEARING 2016-2017 PROPOSED BUDGETS TRAINING AND DEVELOPMENT CENTER BOARD ROOM 5000 RESEARCH FOREST DRIVE THE WOODLANDS, TEXAS 77381-4356 August 4, 2016 Regular Meeting including Public Hearing 6:00 p.m.

Regular Meeting

I. Call to Order

II. Pledge of Allegiance

III. Certification of the Posting of the Notice of the Regular Meeting and Notice of the Public Hearing

IV. Public Hearing – 2016 - 2017 Proposed Budgets

V. Presentation of the 2016-2017 Proposed Budgets

VI. Citizens Comments

VII. Adjournment of Public Hearing

VIII. Termination Hearing for Vice Chancellor for Finance and Administration Cynthia Gilliam

The Board may hear and deliberate this complaint in closed session under Section 551.074 of the Texas Government Code unless Ms. Gilliam wants the hearing to be in open session. Even if the hearing is held in open session, if during the course of the hearing, there are issues raised relating to other employees, the Board of Trustees, in accordance with Section 551.074 of the Texas Government Code may move into Closed Session.

The Board may also move into closed session under 551.071 to consult with the Board’s attorney.

IX. Deliberation and Possible Action on Termination

X. Introductions, Special Guests, Recognitions

XI. Workshop – None

XII. Closed Session

The Board of Trustees, in accordance with Section 551.001, et seq. of the Texas Government Code will move into Closed Session under one or more of the following provision(s) of the ACT:

Section 551.071 – Consultation with Attorney • Status of Pending Litigation • On any item on the Agenda Section 551.072 – Deliberation Regarding Real Property • LSC-University Park, LSC-CyFair, LSC-North Harris, LSC- Tomball, LSC–Montgomery, LSC-Kingwood, LSC-SO-University Park Section 551.074 - Personnel Matters • Chancellor’s Contract

XIII. Reconvene Regular Meeting

XIV. Approval of the Minutes of the June 2, 2016 Workshop and Regular Meeting of the Board of Trustees and the July 14, 2016 Budget Workshop.

XV. Special Reports and Announcements 1. Chancellor – Reports and comments from the Chancellor regarding meetings and conferences attended, campus visits, community and district activities, education programs, current affairs related to higher education

2. Presidents - None

3. Vice Chancellors - None

4. Faculty Senate Presidents -None

5. Board Members • Reports and comments from Board chair and Board members regarding meetings and conferences attended, campus visits, community and district activities, education programs, current affairs related to higher education • Board Committee Reports XVI. Citizen Participation

XVII. Consideration of the Consent Agenda

(The purpose of the consent agenda is to allow the Board to identify and approve action items which require no additional information or discussion and for which there is unanimous approval. Trustees receive agenda materials one week in advance of the meeting to prepare for the business to be conducted.)

XVIII. Policy Report and Considerations

1. Consideration of Approval of Change to Policy I.C.2.19 (FINAL READING) (ACTION ITEM 1)

2. Consideration and Approval of the Proposed Amendment to Lone Star College Policy Manual Section IV.F.2 Professional Development and Qualified Tuition Reduction Program/Educational Assistance Program (FINAL READING) (ACTION ITEM 2)

3. Consideration of Approval of the Order Calling Trustee Election and to Appoint a Staff Agent for the Board Secretary to Perform Election Duties (ACTION ITEM 3)

XIX. Curriculum Reports and Considerations

1. Consideration of Approval of expanding the Accounting Associate of Applied Science (AAS) degree and CPA Certificate to Lone Star College-Kingwood (ACTION ITEM 4)

XX. Financial Reports and Considerations

1. Monthly Financial Reports

2. Consideration of Adoption of the Recommended 2016-17 Budgets (ACTION ITEM 5)

3. Consideration of Approval of Proposed Salary Schedule Changes for Dean of Instruction and Master of Fine Arts (ACTION ITEM 6)

4. Consideration of Approval of Annual Purchases of Technology Hardware, Software and Services (ACTION ITEM 7)

5. Consideration of Approval of Annual Purchases of Bond-Funded Construction and Related Services (ACTION ITEM 8)

6. Consideration of Approval of Annual Purchases of Construction and Related Services (ACTION ITEM 9)

7. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Agreements to Purchase Elevator Maintenance, Safety Inspections and Repair Services (ACTION ITEM 10)

8. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract to Purchase Pressure Washing Services (ACTION ITEM 11)

9. Consideration of Approval to Purchase Library Materials, Supplies, Services and Resources Sharing Membership Fees for FY 2016-17 (ACTION ITEM 12)

10. Consideration of Approval to Renew the Annual Insurance Policies for FY 2016-17 and the Agreements for the Administration of Student Liability and Medical Insurance (ACTION ITEM 13)

11. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Additional Agreements or Amendments to Existing Agreements on behalf of Lone Star College for the Purchase of Electricity Services (ACTION ITEM 14)

12. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract for Independent Audit Services (ACTION ITEM 15)

13. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract to Purchase Classification Services (ACTION ITEM 16)

14. Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-CyFair Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 17)

15. Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-Kingwood Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 18)

16. Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-Montgomery Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 19)

17. Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-North Harris Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 20)

18. Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-Tomball Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 21)

19. Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-University Park Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 22)

20. Consideration of Ratification Authorizing the Chancellor’s or Designee’s Execution of a Contract with the LSC-Kingwood and LSC-North Harris Commissioning Firm for Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 23)

21. Consideration of Ratification Authorizing the Chancellor’s or Designee’s Execution of a Contract with the LSC-Montgomery and LSC-Tomball Commissioning Firm for Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 24)

22. Consideration of Ratification of the Chancellor’s or Designee’s execution of a contract with the LSC-CyFair and LSC-University Park Commissioning Firm for Services related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 25)

23. Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the Program Management Firm for Additional Services Related to the Projects Under the 2014 General Obligation Bond Construction Program (ACTION ITEM 26)

24. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute the Guaranteed Maximum Price (“GMP”) Contract with the LSC-University Park Construction Manager at Risk (“CMAR”) Firm for Construction Services Related to the Building 12 and 13 Entrance Canopy and Parking Project (ACTION ITEM 27)

25. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Easements and Agreements Related to the 2014 General Obligation Bond Construction Program at LSC-North Harris (ACTION ITEM 28)

26. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute the Construction Contract for Building Core Improvements at LSC- University Park Building 10, Level 5 (ACTION ITEM 29)

27. Consideration of Approval to Authorize the Chancellor or Designee to Extend the Fire Academy Facility Use Agreement (ACTION ITEM 30)

28. Consideration and Approval to Review and Ratify an Agreement for the Economic Development of Harris County and the Chancellor’s Execution of the Agreement (ACTION ITEM 31)

29. Consideration of Approval of Resolution Ratifying and Confirming the Terms and Provisions Relating to the Issuance of Lone Star College’s Revenue Financing System Refunding Bonds (ACTION ITEM 32)

XXI. Personnel Report and Considerations

1. Consideration of Ratification of Appointments (ACTION ITEM 33)

2. Consideration of Acceptance of Resignations (ACTION ITEM 34)

3. Proposed Amendments/Addenda to the Chancellor’s Contract (ACTION ITEM 35)

XXII. Special Report and Considerations

1. Consideration of Approval for the Board of Trustees to Submit Nominations to Association of Community College Trustees (ACCT) for ACCT Board Committees (ACTION ITEM 36)

XXIII. Buildings and Grounds Report

Construction Projects Update

XXIV. Suggested Future Agenda Items

XXV. Adjournment

If during the course of the meeting covered by this notice, the Board should determine that a closed session of the Board should be held or is required in relation to an item noticed in this meeting, then such closed session as authorized by Section 551.001 et seq. of the Texas Government Code (the Open Meetings Act) will be held by the Board concerning any and all subjects and for any and all purposes permitted by Section 551.071-551.089, inclusive, of the Open Meetings Act, including, but not limited to: Section 551.071 - Consultation with Attorney Section 551.072 - Deliberation Regarding Real Property Section 551.073 - Deliberation Regarding Prospective Gift Section 551.074 - Personnel Matters Section 551.076 - Deliberation Regarding Security Devices Section 551.082 - Student Discipline Section 551.0821 - Personally Identifiable Information About Student Section 551.084 - Exclusion of Witness Section 551.087 - Economic Development Negotiations Certification of Posting of Notice to the August 4, 2016 Regular Meeting of the Lone Star College System’s Board of Trustees

I, Stephen C. Head, Chancellor of the Lone Star College System, do hereby certify that a notice of this meeting was posted on Monday the 1st day of August, 2016 in a place convenient to the public at LSC-System Office The Woodlands, The Woodlands Leadership Building, on all college campuses and on the system website as required by Section 551.002 et seq., Texas Government Code. Special notice of the meeting was provided to the news media as required by Section 551.001 et seq., Texas Government Code.

Given under my hand this the 1st day of August, 2016.

LONE STAR COLLEGE SYSTEM

______Stephen C. Head Chancellor

Certification of Posting of Notice to the August 4, 2016 Public Hearing 2016-17 Proposed Budget of the Lone Star College System

I, Stephen C. Head, Chancellor of the Lone Star College System, do hereby certify that a notice of the Public Hearing was posted on Monday the 1st day of August, 2016 in a place convenient to the public in the Administration Office of the Central Services and Training Center, on all college campuses and on the system website as required by Section 551.002 et seq., Texas Government Code. Special notice of the meeting was provided to the news media as required by Section 551.001 et seq., Texas Government Code.

Given under my hand this the 1st day of August, 2016.

LONE STAR COLLEGE SYSTEM

______Stephen C. Head Chancellor

MINUTES OF THE WORKSHOP AND REGULAR MEETING OF THE BOARD OF TRUSTEES LONE STAR COLLEGE SYSTEM TRAINING AND DEVELOPMENT CENTER BOARD ROOM 5000 RESEARCH FOREST DRIVE THE WOODLANDS, TEXAS 77381-4356 June 2, 2016 6:00 p.m.

PRESENT: Ms. Linda Good, Chair Dr. Kyle Scott, Vice- Chair Dr. Ron Trowbridge, Secretary Dr. Alton Smith, Assistant Secretary Dr. David Holsey Mr. David Vogt Mr. Ken E. Lloyd Mr. Bob Wolfe

ABSENT: Mr. Art Murillo

WORKSHOP AND REGULAR MEETING

I. CALL TO ORDER: Ms. Good called the workshop and regular meeting of the Board of Trustees to order at 6:01 p.m. after determining that a quorum was present.

II. PLEDGE OF ALLEGIANCE: Dr. Scott led the Board and guests in reciting the Pledge of Allegiance.

III. CERTIFICATION OF THE POSTING OF THE NOTICE OF THE MEETING: Chancellor Head confirmed that the Notice for the meeting had been properly posted. No action was required. A copy is attached as Exhibit “A”.

Mr. Vogt entered the meeting at 6:03 p.m. Mr. Holsey entered the meeting at 6:07 p.m.

IV. INTRODUCTIONS, SPECIAL GUESTS AND RECOGNITIONS: None

V. WORKSHOP: Mr. Clarence Grier, financial advisor with Royal Bank of Canada Capital Markets gave a presentation on the Bond Financing Plan.

VI. CLOSED SESSION: At 6:22 p.m. Ms. Good convened the Board in closed session, in accordance with Section 551.001 et seq. of the Texas Government Code under one or more of the following provision(s) of the Act:

Section 551.071 – Consultation with Attorney • Status of Pending Litigation • On any item on the Agenda Section 551.072 – Deliberation Regarding Real Property • LSC-University Park, LSC-CyFair, LSC-North Harris, LSC- Tomball, LSC–Montgomery, LSC-SO-University Park Section 551.074 - Personnel Matters • Duties and Responsibilities of Administrators in Administration and Finance

VII. RECONVENE REGULAR MEETING: Ms. Good reconvened the open meeting at 7:38 p.m.

VIII. APPROVAL OF THE MINUTES OF THE MAY 5, 2016 WORKSHOP AND REGULAR MEETING: upon a motion made by Dr. Holsey and a second by Dr. Smith the board unanimously approved the minutes of the May 5, 2016 Workshop and Regular Meeting.

IX. SPECIAL REPORTS AND ANNOUNCEMENTS:

1. Chancellor: Dr. Head gave a brief update on the recent floods. No building damage was reported at any of the colleges. LSC-Montgomery had some leaks in buildings.

Dr. Head announced the enrollments were flat for the summer possibly due to the recent flooding and the fall enrollment figures were up.

The chancellor announced there would be a search to replace Dr. Austin Lane who took the position of president at Texas Southern Univerrsity and announced that associate vice chancellor Wendell Williams had resigned to work with Dr. Lane at TSU.

2. College Presidents: None

3. Vice Chancellors: None

4. Faculty Senate Presidents: None

5. Board Members: No reports from the board committees.

Chair Good announced the Budget Workshop will be held on July 14, 2016. Ms. Good also announced the formation of the new Board Policy Review Committee and appointed Dr. Smith, Dr. Scott and Mr. Murillo to serve on this committee.

Dr. Holsey stated he enjoyed attending the graduations at LSC-Montgomery and LSC- CyFair and thanked Dr. Rebecca Riley and Dr. Seelpa Keshvala for the great job they

did in providing two great events. Dr. Holsey recently attended the LSC-Tomball GED graduation and said it was well organized and very moving.

Chair Good indicated she attended all of the GED graduations and said she had enjoyed watching the excitement of the graduates.

X. CITIZENS DESIRING TO ADDRESS THE BOARD: Mr. David Wilson, representing the Cypress Tea Party, addressed the board requesting links for the agenda item tabulations to be made public so the bid evaluation process is more transparent.

Mr. John Burghduff representing the AFT addressed the board on job classification issues.

Mr. William Bailey, adjunct at LSC-CyFair inquired about tuition waivers for senior citizens.

XI. CONSIDERATION OF THE CONSENT AGENDA: Items 3, 17 and 18 were pulled from the agenda to be considered separately. Ms. Good proceeded with the Consent Agenda. Dr. Trowbridge made a motion to approve items 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 19 and 20. Mr. Lloyd seconded the motion and the Board unanimously passed the Consent Agenda. A copy is attached as Exhibit “B”.

XII. POLICY REPORT AND CONSIDERATIONS: 1. Consideration of the Proposed Amendment to Lone Star College Board Policy Manual Section IV.F.2 Professional Development and Qualified Tuition Reduction Program/Educational Assistance Program (SECOND READING): the Board of Trustees reviewed the Proposed Amendment to the College’s Board Policy Manual Section IV.F.2, amending the name of Section IV.F.2 to Professional Development and Educational Assistance Program and Section policy provisions related to professional development and educational assistance for employees. A copy is attached as Exhibit “C”.

2. Consideration and Approval of the Proposed Amendment to Lone Star College Policy Manual Sections I.F.1.07 (ACTION ITEM 1): the Board of Trustees reviewed and approved the Proposed Amendment to Lone Star College System Board Policy Section I.F.1.07. This item was passed in the Consent Agenda. A copy is attached as Exhibit “D”.

3. Consideration and Approval of the Proposed Amendment to Lone Star College Board Policy Manual Section III.H.3 Fraud, Section IV.D.3 Ethical Standards, and Section IV.D.6 Reporting and Investigating Dishonesty and Fraud (ACTION ITEM 2): the Board of Trustees reviewed and approved the Proposed Amendment to the College’s Board Policy Manual Section III.H.3, Section IV.D.3, and IV.D.6, amending College policies related to gifts to College officers and employees. This item was passed in the Consent Agenda. A copy is attached as Exhibit “E”.

4. Consideration and Approval of the Proposed Amendment to Lone Star College Policy Manual Section IV.B.1 Appointment Types (ACTION ITEM 3): upon a motion by Mr. Vogt and

a second by Dr. Smith the Board of Trustees approved the proposed amendments to the College’s Policy Manual Section IV.B.1, Appointment Types with the modified language to read 4.5 month semesters under Section 8 (b). A copy is attached as Exhibit “F”.

XIII. CURRICULUM REPORT AND CONSIDERATIONS: 1. Consideration of Approval to Expand Fire Science Technology Associate of Applied Science (AAS) Degree to Lone Star College – Kingwood (ACTION ITEM 4): the Board of Trustees approved an expansion of the Fire Science Technology AAS degree to Lone Star College – Kingwood. This item was passed in the Consent Agenda. A copy is attached as Exhibit “G”.

XIV. FINANCIAL REPORTS AND CONSIDERATIONS:

1. Monthly Financial Statements: Ms. Carin Hutchins, acting CFO for administration and finance, presented the monthly financial statements for the month ended April 30, 2016. A copy is attached as Exhibit “H”.

2. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Guaranteed Maximum Price (“GMP”) Contract with the LSC-North Harris Construction Manager at Risk (“CMAR”) Firm for Construction Services Related to the Construction and Skilled Trades Technology Center (ACTION ITEM 5): the Board of Trustees authorized the Chancellor or designee to negotiate and execute a GMP contract with the LSC-North Harris CMAR firm, Tellepsen Builders, L.P., 777 Benmar Drive, Suite 400, Houston, Texas 77060, for construction services related to the Workforce Skills and Trade Center, a phase one, group 4 project, in an amount not- to-exceed $13,475,959. This item was passed in the Consent Agenda. A copy is attached as Exhibit “I”.

3. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Guaranteed Maximum Price (“GMP”) Contract with the LSC-Kingwood Construction Manager at Risk (“CMAR”) Firm for Construction Services Related to the Process Technology Satellite Center (ACTION ITEM 6): the Board of Trustees approved authorizing the Chancellor or designee to negotiate and execute a GMP contract with the LSC-Kingwood CMAR firm, Balfour Beatty Construction, LLC, 4321 Directors Row, Houston, Texas 77092, for construction services related to the Process Technology Satellite Center, a phase one, group 2 project, in an amount not- to-exceed $13,475,960.This item was passed in the Consent Agenda. A copy is attached as Exhibit “J”.

4. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Guaranteed Maximum Price (“GMP”) Contract with the LSC-CyFair Construction Manager at Risk (“CMAR”) Firm for Construction Services Related to the Cypress Center Workforce Expansion (ACTION ITEM 7): the Board of Trustees authorize the Chancellor or designee to negotiate and execute a GMP contract with the LSC-CyFair CMAR firm, Satterfield & Pontikes Construction, Inc., 11000 Equity Drive, Suite 100, Houston, Texas 77041, for construction services related to the

Cypress Center Workforce Expansion, a phase one, group 1B project, in an amount not-to-exceed $1,675,991. This item was passed in the Consent Agenda. A copy is attached as Exhibit “K”.

5. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Guaranteed Maximum Price (“GMP”) Contract with the LSC-Montgomery Construction Manager at Risk (“CMAR”) Firm for Construction Services Related to the Live Entertainment Tech Expansion (ACTION ITEM 8): the Board of Trustees authorize the Chancellor or designee to negotiate and execute a GMP contract with the LSC-Montgomery CMAR firm, Rogers-O’Brien Construction, Ltd. dba Rogers- O’Brien, 11200 Richmond, Suite 110, Houston, Texas 77082, for construction services related to the Live Entertainment Tech Expansion, a phase one, group 3A project, in an amount not-to-exceed $2,000,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “L”.

6. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Guaranteed Maximum Price (“GMP”) Contract with the LSC-University Park Construction Manager at Risk (“CMAR”) Firm for Construction Services Related to the Building 12, 7th Floor Classroom Remodel (ACTION ITEM 9): the Board of Trustees authorize the Chancellor or designee to negotiate and execute a GMP contract with the LSC-University Park CMAR firm, Turner Construction Company, 4263 Dacoma Street, Houston, Texas 77092, for construction services related to the Building 12, 7th Floor Classroom Remodel, a phase one, group 6B project, in an amount not-to- exceed $818,164. This item was passed in the Consent Agenda. A copy is attached as Exhibit “M”.

7. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Contracts for the Purchase and Installation of Furniture for LSC-University Park (ACTION ITEM 10): the Board of Trustees authorize the Chancellor or designee to negotiate and execute contracts for the purchase and installation of furniture for LSC- University Park Building 12, 7th floor classroom renovation for a not-to-exceed amount of $160,000 from the following vendors: GL Seaman dba Debner & Company, 8020 Katy Freeway, Houston, TX 77024; Gateway Printing & Office Supply, 315 S. Closner, Edinburg, TX 77477; and Visual Techniques, 2200 Jahan Trail, Longview, TX 75604. This item was passed in the Consent Agenda. A copy is attached as Exhibit “N”.

8. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Contracts for the Purchase and Installation of Furniture for LSC-Tomball (ACTION ITEM 11): the Board of Trustees authorize the Chancellor or designee to negotiate and execute contracts for the purchase and installation of furniture for the LSC-Tomball Health Science Building 3rd floor renovation for a total not-to-exceed amount of $120,000 from the following vendors: GL Seaman dba Debner & Company, 8020 Katy Freeway, Houston, TX 77024, Visual Techniques, 2200 Jahan Trail, Longview, TX 75604. This item was passed in the Consent Agenda. A copy is attached as Exhibit “O”.

9. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract to Purchase Session Initiation Protocol (“SIP”) Trunking and Transport Services (ACTION ITEM 12): the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract to purchase SIP trunking and transport services from AT & T Corporation, One AT & T Way, Bedminster, NJ 07921, for an amount not-to-exceed $450,000 over five years. The initial term of the contract will be for two years with an option to renew for three additional one-year periods. Either party may terminate the agreement upon 30 days’ written notice. This item was passed in the Consent Agenda. A copy is attached as Exhibit “P”.

10. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Contracts for the Purchase of Temporary Employment and Training Services (ACTION ITEM 13): the Board of Trustees authorize the Chancellor or designee to negotiate and execute contracts for the purchase of temporary employment and training services for a not-to-exceed amount of $11,000,000 over the five-year period from the recommended vendors on the attached list. The term of the contracts will be for an initial three years with the option to renew for two additional one-year terms based upon mutual consent. The contracts may be terminated by either party, with or without cause, with 30 days’ written notice. This item was passed in the Consent Agenda. A copy is attached as Exhibit “Q”.

11. Consideration of Approval to Purchase Equipment for the Surgical Technology Program at LSC-Tomball (ACTION ITEM 14): the Board of Trustees approve the purchase of equipment for the Surgical Technology program at LSC-Tomball in the total amount of $291,173 from the following vendors: Getinge USA, 1777 E. Henrietta Road, Rochester, NY 14623 and Stryker Communications, 1410 Lakeside Parkway, Flowermound, TX 75028. This item was passed in the Consent Agenda. A copy is attached as Exhibit “R”.

12. Consideration of Approval to Purchase Additional Technology Hardware, Software and Services (ACTION ITEM 15): the Board of Trustees approve the purchase of additional technology hardware, software and services in an estimated amount of $3,000,000, increasing the total not-to-exceed amount to $15,000,000 for FY 2015-16. In addition, authorize the Chancellor or designee to execute any agreements or statements of work related to these purchases. This item was passed in the Consent Agenda. A copy is attached as Exhibit “S”.

13. Consideration of Adopting a Resolution and Ordinance Establishing Exemptions From Ad Valorem Taxes for Tax Year 2016 (ACTION ITEM 16): the Board of Trustees adopt a resolution and ordinance establishing the following exemptions from ad valorem taxes for tax year 2016 for Harris, Montgomery, and San Jacinto counties: Homestead Exemption - $5,000 or 1% (whichever is greater), Disability or Over 65 Additional Homestead Exemption - $75,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “T”.

XV. SPECIAL REPORT AND CONSIDERATIONS:

1. Consideration of Approval for the Board of Trustees to Submit a Nomination to Association of Community College Trustees (ACCT) for Dr. Stephen Head for the Chief Executive Officer Award (ACTION ITEM 17): upon a motion by Dr. Holsey and a second by Dr. Scott the Board approved submitting a nomination for Dr. Stephen Head for the Chief Executive Officer Award. A copy is attached as Exhibit “U”.

2. Consideration of Approval for the Board of Trustees to Submit a Nomination to Association of Community College Trustees (ACCT) for Ms. Helen Clougherty for the Professional Board Staff Member Award (ACTION ITEM 17): upon a motion by Mr. Wolfe and a second by Dr. Scott the Board approved submitting a nomination for Ms. Helen Clougherty for the Professional Board Staff Member Award. A copy is attached as Exhibit “V”.

XVI. PERSONNEL REPORTS AND CONSIDERATIONS:

3. Consideration of Ratification of Appointments (ACTION ITEM 19): the Board unanimously ratified the appointments as presented. This item was passed in the Consent Agenda. A copy is attached as Exhibit “W”.

4. Consideration of Acceptance of Resignations (ACTION ITEM 20): the Board unanimously accepted the resignations as presented. This item was passed in the Consent Agenda. A copy is attached as Exhibit “X”.

XVII. BUILDING AND GROUNDS REPORTS:

Construction Projects Update: the Board reviewed the report as presented. A copy is attached as Exhibit “Y”.

XVIII. SUGGESTED FUTURE AGENDA ITEMS: Items to be considered to be added to future board meeting agendas:

Adding tabulations and rubric measurement to agenda items that go out for bid, Status of HUB – Historically Underutilized Businesses, senior citizen tuition waiver, Trustees nominations for ACCT committees, and recruiting.

XIX. ADJOURNMENT: There being no further business, the meeting was adjourned at 8:18 p.m.

ATTEST:

______Board of Trustees, Chair Board of Trustees, Secretary

MINUTES OF THE BUDGET WORKSHOP MEETING OF THE BOARD OF TRUSTEES OF THE LONE STAR COLLEGE SYSTEM TRAINING AND DEVELOPMENT CENTER BOARD ROOM 5000 RESEARCH FOREST DRIVE THE WOODLANDS, TEXAS 77381 July 14, 2016 12:00 p.m.

PRESENT: Ms. Linda Good, Chair Dr. Kyle Scott, Vice Chair Dr. Alton Smith, Assistant Secretary Mr. Art Murillo Mr. Ken E. Lloyd Mr. Bob Wolfe Mr. David Vogt

ABSENT: Dr. Ron Trowbridge

I. CALL TO ORDER: Ms. Good called the budget workshop meeting of the Board of Trustees to order at 12:03 p.m. after determining a quorum was present.

II. PLEDGE OF ALLEGIANCE: Dr. Holsey led the Board and guests in reciting the Pledge of Allegiance.

IV. REVIEW OF RECOMMENDED 2016-2017 BUDGET: Chancellor Head led a review of the proposed budget for 2016-2017. The presentation included a report on Lone Star College growth and enrollment projections, a summary of the recommended 2016-17 budget, cash reserves and the next five years.

Mr. Wolfe entered the meeting at 12:45 p.m. Mr. Vogt entered the meeting at 1:01 p.m.

The recommended budget is $347,662,000.

V. RECESS MEETING: At 1:40 p.m. Ms. Good called the meeting to recess for a break.

VI. RECONVENE MEETING: At 2:00 p.m. Ms. Good reconvened the meeting.

VII. DISCUSSION: Highlights of the recommended budget include: a 2% cost of living adjustment (minimum of $750) for all full-time employees hired prior to June 1, 2016, effective September 1, 2016; a $2 per contact hour increase for adjunct faculty; a 2% increase for part-time staff; 20 new full-time faculty; a 7 % increase in group health insurance premiums; and maintaining or lowering the tax rate once certified rolls have been received.

Ms. Good appointed a committee to review the Chancellor’s contract: Dr. Dave Holsey, Dr. Alton Smith and Ms. Linda Good.

Ms. Good recommended Dr. Alton Smith, and Mr. Ken Lloyd research Black Male Student Success and report on their findings and bring back suggestions at a future board meeting.

Ms. Good also reminded Trustees that the August 4, 2016 Board of Trustees meeting will begin at 4:00 p.m.

VIII. CLOSED SESSION: At 2:37 p.m. Ms. Good convened the Board in closed session, in accordance with Section 551.001 et seq. of the Texas Government Code under one or more of the following provision(s) of the Act:

Section 551.071 – Consultation with Attorney • Forensic Audit • On any item on the Agenda Section 551.074 - Personnel Matters • Duties and Responsibilities of Administrators in Administration and Finance

I. FUTURE AGENDA ITEMS: Items to be considered to be added to future board meeting agendas:

Adding tabulations and rubric measurement to agenda items that go out for bid, Trustees nominations for ACCT committees, status of HUB – Historically Underutilized Businesses, senior citizen tuition waiver, and recruiting.

IX. ADJOURNMENT: Ms. Good adjourned the budget workshop at 4:52 p.m.

ATTEST:

______Board of Trustees, Chair Board of Trustees, Secretary Consideration of Consent Agenda Board Meeting 8-4-16

Consent Agenda: A roll call of individual action items will determine the consent agenda. If a trustee has a question or plans to cast a negative vote regarding a specific recommendation, then the trustee/trustees need to acknowledge their intention to the Chair by show of hand during the roll call: this action item will be considered in the regular order of business as an individual action item.

Those action items that the trustees plan to approve without further question or discussion will be placed on the consent agenda during roll call of individual action items. Upon the creation of the consent agenda, a motion, a second to the motion, and unanimous approval of the Board of Trustees is needed to approve the action items. Upon approval of the consent agenda, the Board of Trustees will proceed with the remainder of the agenda.

Rationale: The consent agenda format is an organization process for meetings that allows the governing board to focus their time and attention on action items that require more elaboration, information, and/or discussion. The intent of the consent agenda is to support efficiency and effectiveness of the meeting.

Tally of Action Items: Chancellor Board Consent Recommended Separate Agenda Separate Action Action

# 1 – Approve Change to Policy I.C.2.19 ______# 2 – Approve Amendment LSC Board Policy IV.F.2 ______# 3 – Approve Order Calling Trustee Elect/Appt Staff Agent ______# 4 – Approve expansion AAS/CPA Cert/LSC-Kingwood ______# 5– Adopt Recommended 2016-17 Budgets ______# 6 – Approve Proposed Salary Change/Deans/Inst/FineArt ______# 7 – Approve Annual Purchases TechnologyHardware/software ______# 8 – Approve Annual Purch/Bond-Funded Construction Svs ______# 9 – Approve Annual Purch Construction & Related Svs ______#10 – Authorize/Chan/Neg/Exec/Agrmt/Purch/Elev/Main/Svs ______#11 – Auth/Cha/Neg/Exec/Cont/Purch/Power/Washing Svcs ______#12 – Approve Purch/Library Materials/Supplies/Svs/2016-17 ______#13 – Approve Renewal Annual Insurance Policies FY 16-17 ______#14 – Authorize/Chan/Neg/Exec/Agrmt/Purch/Electric/Services ______#15 – Auth/Chan/Neg/Exec/Contr/Independent/Audit/Svcs ______#16 – Auth/Chan/Neg/Exec/Contr/Purch/Classification/Svcs ______#17 – Auth/Chan/Amend/Contr/LSC-CF/Architectural Firm ______#18 – Auth/Chan/Amend/Contr/LSC-KW/Architectural Firm ______#19 – Auth/Chan/Amend/Contr/LSC-M /Architectural Firm ______

Tally of Action Items: Chancellor Board Consent Recommended Separate Agenda Separate Action Action

#20 – Auth/Chan/Amend/Contr/LSC-NH/Architectural Firm ______#21 – Auth/Chan/Amend/Contr/LSC-Tomball/Architect/Firm ______#22 – Auth/Chan/Amend/Contr/LSC-UP/Architectural Firm ______#23 – Auth/Chan/Exec/Contr/LSC-KW/NH/Commission/Firm ______#24 – Auth/Chan/Exec/Contr/LSC-M/Tom/Commission/Firm ______#25 – Auth/Chan/Exec/Contr/LSC-CF/UP/Commission/Firm ______#26 – Auth/Chan/Amend/Contr/Prog/Mgmt/Firm/Add’l/Svcs ______#27 – Auth/Chan/Exec/GMP/LSC-UP/CMAR/Bldg12 & 13 ______#28 – Auth/Chan/Exec/Easements/Agree/LSC-NH/GO Bond ______#29 – Auth/Chan/Exec/Contr/Bldg/Improve/LSC-UP/Bldg10 ______#30 – Authorize/Chan/Extend Fire Acad/Facilty/Use/Agrmt ______#31 – Approve Review/Ratify Agree/ED Harris Co ______#32 – Approve Res/Ratify/Terms/Prov/LSC/Refund Bonds ______#33 – Ratify Appointments ______#34 – Accept Resignations ______#35 – Accept any Proposed Addenda Chancellor’s Contract ______#36 – Approve BOT to Submit Nominations ACCT Comm ______

Policy Report and Consideration No. 1 (ACTION ITEM 1) Board Meeting 8-4-16

Request: Consideration of Approval of Change to Policy I.C.2.19 (ACTION ITEM 1) (FINAL READING)

Chancellor’s That the Board of Trustees approve the proposed change to Policy Recommendation: I.C.2.19.

Rationale: Currently Board Policy I.C.2.19 provides that to be elected to a public office, a candidate must receive more votes than any other candidate for the office. This is plurality vote requirement. Upon review of this policy and current statutory authority, as well as an Attorney General opinion, the College should be electing its trustees by majority vote rather than by plurality

Although Section 2.001 of the Election Code provides that elections in the State of Texas are by plurality that is only true if another law does not provide otherwise. Section 130.082 provides that junior college districts are to elect trustees by majority vote. Additionally, Section 130.0822, governing junior colleges electing by single member district, requires compliance with Section 130.082.

Fiscal Impact: This policy change, which now requires a majority vote could result in run-off elections for which the College would bear the cost of administering the run-off election and unlike their general elections the College likely would not be able to disperse the cost of a run-off with election partners.

Staff Resource: Helen Clougherty 832-813-6514 Mario Castillo 832-813-6655

I.C.2.19 Majority Vote Required

A candidate receiving a majority of the votes cast for a position shall be declared elected. If no candidate receives a majority, then the two candidates receiving the highest number of votes shall run against each other for the position in a run-off election. The run-off election shall be held and conducted in compliance with state law.1

1 TEX. ELEC. CODE § 2.001; TEX. EDUC. CODE § 130.044(e) Policy Report and Consideration No. 2 (ACTION ITEM 2) Board Meeting 8-4-16

Request: Consideration and Approval of the Proposed Amendment to Lone Star College Board Policy Manual Section IV.F.2 Professional Development and Qualified Tuition Reduction Program/Educational Assistance Program (ACTION ITEM 2) (FINAL READING)

Chancellor’s That the Board of Trustees approve the Proposed Amendment to the Recommendation: College’s Board Policy Manual Section IV.F.2, amending the name of Section IV.F.2 to Professional Development and Educational Assistance Program and Section policy provisions related to professional development and educational assistance for employees.

Rationale: Current policy requires repayment of tuition and fee waivers granted to employees unsuccessful in satisfying waiver eligibility requirements. In efforts to encourage and cultivate a culture of support to employees in educational career advancement opportunities, the College seeks to eliminate the condition of repayment under any circumstance. This amendment would also remove and relocate the specific listing of additional waiver eligibility requirements contained in current policy to procedures developed and published for this program. This relocation would allow the College the ability to promptly revise or adjust eligibility requirements as needed in response to evolving program needs. Additionally, the renaming of this Section to “Professional Development and Educational Assistance Program” (emphasis added) ensures that the College policy naming convention is accurately aligned with the federal statutory naming convention for this program.

For these reasons, the College requests the Board to consider and review the proposed Section IV.F.2 policy amendments.

Fiscal Impact: Based on prior fiscal year data, the cost of this policy amendment is estimated to be approximately $30,000.

Resource: Mario K. Castillo 832-813-6655 Carin Hutchins 832-813-6737

IV.F.2. Professional Development and Educational Assistance Program

IV.F.2.01 - Policy

The College encourages and supports the advancement of all employees through educational, professional, and vocational development and training opportunities.

IV.F.2.02 - Definitions

(a) Professional Development means activities and opportunities that enhance the skill, knowledge and ability required in an employee's current position, or prepares an employee for a career path position in their area1. (b) Educational Assistance Program means a separate written plan of an employer for the exclusive benefit of his employees to provide such employees with educational assistance2. (c) Educational Assistance means payment, by an employer, of expenses incurred by or on behalf of an employee for education of the employee (including, but not limited to, tuition, fees, and similar payments, books, supplies and equipment), and the provision, by an employer, of courses of instruction for such employee (including books, supplies, and equipment). Educational Assistance does not include payment for, or the provision of, tools or supplies which may be retained by the employee after completion of a course of instruction, or meals, lodging, or transportation, or payment for, or the provision of any benefits with respect to, any course or other education involving sports, games, or hobbies3 (d) Continuous Employment means employment in which employees receive pay in 26 consecutive pay periods during normal working business days4. (e) Laboratory Fee means a sum sufficient to cover the general laboratory material and supply costs used by a laboratory student. Laboratory fees charged by the College shall not exceed the lesser of $24 per semester credit hour of laboratory course credit for which the student is enrolled or the cost of actual materials and supplies used by the student. 5

IV.F.2.03 - Required Development

The College provides financial support for professional licensure renewals, professional association or organization membership dues, and established continuing education requirements for specific positions. Position requirements are determined by the Chancellor or designee. Additionally, the College provides time-off and cost-reimbursement for job-specific training

1 Taken from existing Board Policy F.2.02 (professional development activities). 2 26 U.S.C.A. §127 (b)(1). 3 26 U.S.C.A. §127(c)(1). 4 Taken from existing Board Policy F.2.05 (eligibility for a waiver of tuition and required fees). 5 LSC Board Policy Manual Section VI.B.4.02 (d); Texas Education Code Section 54.501. required for all employees, including but not limited to, orientation, legal compliance training, systems training, process training and other position-specific training.

IV.F.2.04 - Professional Development Activities

An employee may request Professional Development Leave to attend professional conferences, workshops, seminars, training courses, or meetings as approved by the supervisor. Pre-approved Leave is an excused absence. Sick, vacation, or compensatory time is not used. Additionally, an employee may request reimbursement or an advance for expenses related to professional development activities, including registration fees, travel, meals, and lodging in accordance with College travel policies and procedures.

All Professional Development costs and expenses must be within departmental budget authority and pre-approved by an employee’s supervisor.

IV.F.2.05 - Organization Membership

Memberships in professional or academic associations or organizations are reimbursable, with supervisor approval, up to $25 a year per employee. The College shall not reimburse dues paid to unions or organizations engaging in lobbying or political activities.

IV.F.2.06 - Employee Educational Assistance

The College may provide limited Educational Assistance for eligible employees seeking to further their academic development. As Educational Assistance, the College will waive the tuition and required fees for eligible employees (up to six credit hours per term for a maximum of 18 credit hours per academic year) for approved College courses taken in accordance with this policy. Additionally, the College will do the same with state-funded continuing education courses for eligible employees for approved College courses taken in accordance with this policy, subject to space availability. The College may waive tuition and required fees for a course that includes a laboratory fee.

IV.F.2.07 Educational Assistance Eligibility

Full-time employees employed at the start of class are eligible to receive assistance.

Part-time employees regularly employed with the College who have completed twelve months of continuous employment are eligible. Adjunct faculty who have taught at least six consecutive spring and fall semesters are eligible for assistance.

IV.F.2.08 Educational Assistance Conditions

Conditions of Educational Assistance will be developed and published by the College in procedures for the Educational Assistance Program. IV.F.2.09 Procedures

The Chancellor or designee may develop procedures for appropriate implementation of the program. Policy Report and Consideration No. 3 (ACTION ITEM 3) Board Meeting 8-4-16

Request: Consideration of Approval of the Order Calling Trustee Election and to Appoint a Staff Agent for the Board Secretary to Perform Election Duties

Chancellor’s That the Board of Trustees approve the order calling the trustee election Recommendation: on November 8, 2016. The trustee election is for District No. 5, District No. 6, and District No. 7 for a six-year term on the Board of Trustees of the Lone Star College System.

Rationale: Board of Trustees Policy I.C.2.02 Elections, in accordance with Chapter 130 of the Texas Education Code, requires an election of trustees for single member districts in Districts 5, 6, and 7 for a six-year term.

The Board is also requested to appoint Helen Clougherty as the agent for Board Secretary, Dr. Ron Trowbridge, to perform the election duties and to keep the office hours required by Section 31.123 of the Election Code. A notice will be posted in accordance with election law requirements.

Fiscal Impact: Montgomery County Elections Services, San Jacinto County Election Services, and Harris County Clerk Elections Division shall conduct the election for the System at the designated county polling sites for early voting and on Election Day. The estimated cost is approximately $750,000 based on previous election costs. Funds are available in the approved 2015-2016 operating budget. Funds for the 2016-2017 fiscal year will be included in the proposed 2016-2017 operating budget.

Staff Resource: Helen Clougherty 832-813-6514

ORDER CALLING SCHOOL TRUSTEE ELECTION

THE STATE OF TEXAS § COUNTIES OF HARRIS, MONTGOMERY, AND SAN JACINTO § LONE STAR COLLEGE SYSTEM §

WHEREAS, under the laws governing the Lone Star College System (“System”), an election for Trustees to District Nos. 5, 6 and 7, respectively, on the Board of Trustees of the Lone Star College System, shall be held on November 8, 2016, under the direction of the Chancellor of the System or his designee;

NOW, THEREFORE, be it ordered by the Board of Trustees of the Lone Star College System that:

SECTION 1: An election shall be held within the System on November 8, 2016, between the hours of 7:00 a.m. and 7:00 p.m. for the purpose of electing Trustees to fill positions for District Nos. 5, 6, and 7, respectively, of the Board of the System. The Chairman and Secretary of the Board are authorized and directed to give notice of such election in the manner and for the time required by law. All of the duly qualified resident electors of the System shall be qualified to vote in said election.

SECTION 2: Any qualified voter desiring election for a position on such Board shall file with Ms. Helen Clougherty as the agent for Dr. Ron Trowbridge, the Secretary of the Board of Trustees, between July 23, 2016 and August 22, 2016 a completed application and filing fee of two-hundred dollars ($200.00) or a petition with the signatures of two hundred (200) registered voters of the Lone Star College System District in which he or she is a candidate to have his or her name placed on the official ballot and the District number on such Board for which he or she desires to become a candidate. Candidates must be residents of Districts 5, 6, or 7 in which they intend to run.

No candidate shall be eligible to have his or her name placed on the official ballot under more than one position to be filled at such election. All candidates for Trustee in such election shall be voted upon and elected separately for positions on said Board, and all candidates shall be designated on the official ballot according to the number of such position to which they may seek election.

No person shall have a vote counted for him or her as a write-in candidate unless that person has filed a written declaration of write-in candidacy with Helen Clougherty, Vice Chancellor, Chief of Staff, by 5:00 p.m. on August 26, 2016 at the Lone Star College System Office.

If there is only one candidate for election to one or more positions at the close of the declaration of write- in candidacy deadline at 5:00 p.m. on August 26, 2016, Dr. Ron Trowbridge, Board of Trustees Secretary, shall certify in writing which candidates are unopposed for election. The certification shall be delivered to the Board of Trustees as soon as possible and the Board, in accordance with Texas Open Meeting requirements, may declare each unopposed candidate elected to office. If Dr. Ron Trowbridge is one of the unopposed candidates, Dr. Alton Smith, Board of Trustees Assistant Secretary, shall certify in writing which candidates are unopposed for election. The certification shall be delivered to the Board of Trustees as soon as possible and the Board, in accordance with Texas Open Meeting requirements, may declare each unopposed candidate elected to office.

SECTION 3: The official ballot shall have printed on it:

Official Ballot Lone Star College System Trustees Election

and shall have designating numbers of each position to be filled, with the list of candidates under the position to which they respectively seek election. The names of the candidates for each position shall be arranged by lot.

#4665780.2

At such election each qualified voter shall not vote for more than one (1) candidate for each position. The candidates shall be elected by majority vote with the candidate receiving the majority of votes in the respective position being declared the winner.

The results of the election shall be canvassed by the Board on November 10, 2016 at 5:00 p.m., in the Board Room of the Lone Star College System District Services and Training Center, 5000 Research Forest Drive, The Woodlands, Texas.

Montgomery County Elections Services, San Jacinto County Election Services, and Harris County Elections shall conduct the Trustee and Bond elections for the System at the designated county and District 5, 6, and 7 polling sites for early voting and on Election Day.

SECTION 4: The election shall be held at the following election precincts in Harris County, Montgomery County, and San Jacinto County within the boundaries and limits of Districts 5, 6, and 7 within Harris County, Montgomery County, and San Jacinto County for the Trustee election. The election precincts established shall be designated by numbers, and the boundaries of the election precincts shall be those respectively designated and numbered precincts, or parts of numbered precincts, lying within the boundaries of Districts of 5, 6, and 7 within the System, which have been duly described, designated, and established by order of the Harris County Commissioners Court, Montgomery County Commissioners Court, and San Jacinto County Commissioners Court. The polling places are listed on Exhibit A—these polling sites are subject to change by decision of the respective county election administrator and will updated in this Order as the new sites are identified.

SECTION 5: Early voting by personal appearance shall begin on October 24, 2016 and continue through November 4, 2016 as listed on Exhibit B.

Montgomery County registered voters may early vote at any Montgomery County early voting location for the Trustee election.

Harris County registered voters may early vote at any Harris County early voting location for the Trustee election.

San Jacinto County registered voters may early vote at any San Jacinto County early voting location for the Trustee election.

The Early Voting Clerk for the election in Montgomery County, hereby designated to be Suzie Harvey, Montgomery County Elections Administrator, 9159 Airport Road, Conroe, Texas, 77303 will process, mail, and tabulate the early ballots by mail for Montgomery County.

The Early Voting Clerk for the election in Harris County, hereby designated to be Stan Stanart, Harris County Clerk, P.O. Box 1525, Houston, Texas, 77251-1525 will process, mail, and tabulate the early ballots by mail for Harris County.

The Early Voting Clerk for the election in San Jacinto County, hereby designated to be Sherryl Evans, San Jacinto County Elections Administrator, 51 East Pine Avenue, Room A1, Coldspring, Texas, 77331 will process, mail, and tabulate the early ballots by mail for San Jacinto County.

SECTION 6: The voting at each election site shall be by voting machines duly adopted by the Commissioners Court of Harris County, Montgomery County, and San Jacinto County utilizing a ballot method approved for use in elections held in each County. Voters in Harris County in Districts 5, 6, and 7 shall use the County’s electronic voting system to vote for a candidate for their respective Trustee position. Voters in Harris County and Montgomery County will vote by operating eSlate’s Rotary Select to highlight the name of the candidate for whom the voter desires to vote.. The voter will push the ENTER button to register their vote. Voters in San Jacinto County will vote by operating Election Systems & Software, Inc. iVotronic Touch Screen to highlight the

name of the candidate for who the voter desires to vote. The voter will press the small “vote” button at the very top of the iVotronic to cast the vote.

SECTION 7: This Order shall constitute the election order for the call of the election and the same or a substantial copy thereof shall constitute the notice of such election, and the Secretary of the Board is ordered to cause notice of the election to be given as required by law. Immediately after the election, the officers holding the election shall convey returns of the results to the Board of the System. The Board shall canvass such returns, declare the results of such election, and issue certificates of election to the persons shown by such returns to be elected to each of the three (3) named positions.

Notice of such election shall be given by publishing a substantial copy of this election order, in English, Spanish, Vietnamese, and Chinese, one time, not earlier than the thirtieth day nor later than the tenth day prior to the date set for the election, in a newspaper published in the District, and by posting a copy of this order on the bulletin board used for posting notices of Board of Trustees meetings, in at least three (3) public places in the boundaries of the System and the System’s web page, not later than the 21st day prior to the date set for the election.

Said election shall be held in accordance with the Texas Election Code, except as modified by the Texas Education Code and the Federal Voting Rights Act of 1965, as amended.

It is hereby officially found and determined that notice of the meeting at which this order is adopted was given as required by the Texas Open Meetings Act, and that such meeting has been open to the public at all times when this order was discussed and acted on.

PASSED AND APPROVED on August 4, 2016.

______Chair, Board of Trustees LONE STAR COLLEGE SYSTEM

ATTEST:

______Secretary, Board of Trustees LONE STAR COLLEGE SYSTEM (SEAL)

Curriculum Report and Consideration 1 (ACTION ITEM 4) Board Meeting 8-4-16

Request: Consideration of Approval of expanding the Accounting Associate of Applied Science (AAS) degree and CPA Certificate to Lone Star College- Kingwood.

Chancellor’s That the Board of Trustees approve the following request for an expansion Recommendation: of the Accounting AAS degree and CPA Advanced Technical Certificate to Lone Star College-Kingwood.

Rationale: Lone Star College-Kingwood has traditionally offered some courses for the AAS and CPA Certificate without ability to graduate completing students. Demands in the Houston-Sugarland-Baytown Metropolitan Statistical Area (MSA) show substantial growth for accountants and accounting-related occupations, and labor market data from the Texas Workforce Commission, Economic Modeling Specialists and Burning Glass Technologies show very high demand and strong wages for these occupational fields.

Accounting AAS Occupation: Bookkeeping, Accounting & Auditing Clerks TWC Total Annual Average Job Openings (2012-2022) 1,125 TWC Entry Wage (2013) $11.86 TWC Median Wage (2013) $17.51 Burning Glass Demand (Job Postings Feb. 1, 2015- Jan. 31, 2016, Houston- 5,027 Sugarland-Baytown Metropolitan Statistical Area)

Accounting ATC (CPA) Occupation: Accountants & Auditors TWC Total Annual Average Job Openings (2012-2022) 1,660 TWC Entry Wage (2013) $22.68 TWC Median Wage (2013) $33.70 Burning Glass Demand (Job Postings Feb. 1, 2015- Jan. 31, 2016, Houston-Sugarland- 12,521 Baytown Metropolitan Statistical Area) Sources: Texas Workforce Commission, Burning Glass Technologies

There will be no change to current program curriculum for these expansions to occur. Labor market data and zip code analysis were reviewed during the internal vetting process for this expansion request. No negative impacts to existing programs at LSC-Montgomery, LSC-North Harris, LSC-Tomball and LSC-University Park are predicted.

The Texas Higher Education Coordinating Board requires that the College’s Board of Trustees approves new programs.

Fiscal Impact: Funding for this program will be included in the proposed FY 2016-17 budget for LSC-Kingwood.

Staff Resource: Katherine Persson 832-316-8009

Financial Report and Consideration No. 1 Board Meeting 8-4-16

Report: Monthly Financial Statements

The financial statements for the months ended June 30, 2016 and May 31, 2016, and the quarterly investment report for the period ending May 31, 2016 are presented for Board review. ACTUAL REVENUES AS A % OF BUDGET 9/1 THROUGH 6/30 100%

98%

96%

94%

91.8% 91.9% 92% 91.4%

89.9% 90%

88% 87.1%

86%

84%

82%

80% 2011-12 2012-13 2013-14 2014-15 2015-16

1 ACTUAL EXPENDITURES AS A % OF BUDGET 9/1 THROUGH 6/30 100%

90%

80%

70% 75.4% 76.2% 78.6% 77.4% 74.8% 60%

50%

40%

30%

20%

10%

0% 2011-12 2012-13 2013-14 2014-15 2015-16

2 LONE STAR COLLEGE

Statement of Revenues and Expenditures General and Auxiliary Funds YTD June 30, 2016 Unaudited PRIOR YEAR PRIOR YEAR % ACTUAL ACTUAL % ACTUAL FISCAL YTD TO BUDGET FISCAL YTD TO BUDGET BUDGET ACTUAL 83% FY ELAPSED 6/30/2015 83% FY ELAPSED

REVENUES:

State Appropriations $ 74,090,000 $ 59,926,485 80.9% $ 58,705,316 81.0% Tuition and Fees 111,840,000 106,014,225 94.8% 107,064,335 98.3% Taxes 125,260,000 125,072,561 99.9% 112,451,941 96.7% Investments 420,000 373,415 88.9% 352,051 100.6% Other 6,020,000 4,526,479 75.2% 4,403,106 75.3% Tuition/Growth Contingency 910,000 - 0.0% - 0.0%

Total Current Operations Revenues 318,540,000 295,913,165 92.9% 282,976,749 92.6%

Auxiliary Revenues 18,140,000 11,685,840 64.4% 11,827,133 78.8%

Total Revenues 336,680,000 307,599,005 91.4% 294,803,882 91.9%

Reserves 5,810,000 - 0.0% - 0.0%

Total Revenues and Reserves 342,490,000 307,599,005 294,803,882

EXPENDITURES:

Instruction-Academic 83,608,126 67,207,138 80.4% 65,557,601 84.3% Instruction-Workforce 30,401,465 26,546,955 87.3% 25,514,246 93.5% Public Service 760,194 610,902 80.4% 534,315 69.7% Academic Support 52,487,205 37,400,039 71.3% 40,076,836 69.7% Student Services 47,004,295 33,512,504 71.3% 32,250,621 74.5% Institutional Support 31,729,157 25,271,327 79.6% 26,923,237 78.8% Plant Operation and Maintenance 33,698,531 27,490,632 81.6% 26,396,529 73.6% Staff Benefits 27,101,027 23,387,741 86.3% 21,605,574 95.0% Growth Contingency 1,570,000 - 0.0% - 0.0%

Total Educational and General Expenditures 308,360,000 241,427,238 78.3% 238,858,959 79.3%

Repair, Replacement and Other Internally Designated 5,050,000 2,386,276 47.3% 2,153,291 42.6%

Auxiliary 18,580,000 13,260,122 71.4% 11,731,950 78.2%

Total Expenditures 331,990,000 257,073,636 77.4% 252,744,200 78.6%

Other Changes - Debt Service & Fund Transfers 10,500,000 6,979,844 6,913,344

Total Expenditures and Transfers 342,490,000 264,053,480 259,657,544

NET INCREASE (DECREASE) IN FUND BALANCES General Funds 440,000 45,119,807 35,051,155 Auxiliary Funds (440,000) (1,574,282) 95,183

TOTAL NET INCREASE (DECREASE) IN FUND BALANCES $ 0 $ 43,545,525 $ 35,146,338

3 LONE STAR COLLEGE

Balance Sheet June 30, 2016 Unaudited

GASB Memorandum Memorandum General & Reporting Totals Totals ASSETS Auxiliary Restricted Entries (*) Current Year Prior Year

Cash, cash equivalents & investments $ 59,404,155 $ 198,662,458 $ (8,367) $ 258,058,246 $ 311,145,548 Accounts receivable, net 21,389,455 5,685,029 5,271,204 32,345,688 29,821,667 Prepaid and deferred expenses 13,468,048 - 13,468,048 8,058,236 Inventories, at cost 6,240 - - 6,240 48,770 Capital assets, net - - 781,414,018 781,414,018 750,469,441

TOTAL ASSETS 94,267,898 204,347,487 786,676,855 1,085,292,240 1,099,543,662

Deferred Outflows - - 8,864,100 8,864,100 -

TOTAL ASSETS AND DEFERRED OUTFLOWS $ 94,267,898 $ 204,347,487 $ 795,540,955 $ 1,094,156,340 $ 1,099,543,662

LIABILITIES AND FUND BALANCES

LIABILITIES: Accounts payable & Accrued Absences Payable $ 4,571,867 $ 9,395,976 $ 13,967,843 $ 17,743,882 Deferred revenues 4,813,785 4,312,545 - 9,126,330 9,218,398 Accrued interest payable - 11,739,253 - 11,739,253 7,715,674 Bonds payable - - 736,311,395 736,311,395 752,801,818 Net Pension Liability - - 48,590,998 48,590,998 - Assets held in custody for others - 8,022,791 - 8,022,791 7,968,995

TOTAL LIABILITIES 9,385,652 33,470,565 784,902,393 827,758,610 795,448,767

Deferred Inflows - - 14,864,130 14,864,130 -

TOTAL LIABILITIES AND DEFERRED INFLOWS 9,385,652 33,470,565 799,766,523 842,622,740 795,448,767

TOTAL FUND BALANCES 84,882,246 170,876,922 (4,225,568) 251,533,600 304,094,895

TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 94,267,898 $ 204,347,487 $ 795,540,955 $ 1,094,156,340 $ 1,099,543,662

* Includes GASB (Governmental Accounting Standards Board) reporting entries related to Capital Assets, Long Term Debt, and Pensions

4 LONE STAR COLLEGE SUMMARY OF INVESTMENTS AS OF JUNE 30, 2016

Weighted Ending BV Ending BV Avg. Purchase Description Ending BV 05/31/2016 Total Buys Total Sells Interest/Dividends 06/30/2016 06/30/2015 Yield

GENERAL FUNDS

POOLS $ 22,703,309 $ 18,695,819 $ 33,627,190 $ 1,489 $ 7,771,938 $ 8,255,822

CERTIFICATES OF DEPOSIT 4,048,895 2,503 - 2,503 4,051,398 45,714,864

MONEY MARKET ACCOUNTS 15,665,735 6,559 - 2,664 15,672,294 15,630,098

SECURITIES 37,995,951 1,187 - 1,187 37,997,138 18,455,316

Total / Average $ 80,413,890 $ 18,706,068 $ 33,627,190 $ 7,843 $ 65,492,768 $ 88,056,100 0.59% DEBT SERVICE & CAPITAL PROJECTS

CERTIFICATES OF DEPOSIT $ 1,240,000 $ - $ - $ - $ 1,240,000 $ 10,040,392

DEBT SERVICE POOLS 58,394,343 306,149 - 5,621 58,700,492 39,789,959

CAPITAL PROJECTS POOLS 113,265,354 52,482 - 52,482 113,317,836 163,589,378

MONEY MARKET ACCOUNTS 15,122,524 4,591 - 4,591 15,127,115 15,078,759

AGENCIES 14,319,074 - 4,626 - 14,314,448 -

Total / Average $ 202,341,295 $ 363,222 $ 4,626 $ 62,694 $ 202,699,891 $ 228,498,488 0.54%

TOTAL $ 282,755,185 $ 19,069,290 $ 33,631,816 $ 70,537 $ 268,192,659 $ 316,554,588 0.55%

5 QUARTERLY INVESTMENT REPORT

FOR THE QUARTER ENDED

May 31, 2016

Prepared by Administration and Finance Department

/s/ Carin Hutchins Carin Hutchins, Acting CFO

/s/ Tammy Cortes Tammy Cortes, Associate Vice Chancellor for Administration & Finance

The investment portfolio of Lone Star College is in compliance with the Public Funds Investment Act and the College's Investment Policy and strategies.

6 LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORT AS OF MAY 31, 2016

Quarter End Results by Investment Category:

Portfolio Book Value Unrealized Market Value Portfolio Book Value Unrealized Market Value Type of Security % 5/31/2016 Gains / (Losses) 5/31/2016 % 2/29/2016 Gains / (Losses) 2/29/2016

Money Market and Investment Pools 79.6% $ 225,151,265 $ - $ 225,151,265 78.7% $ 254,782,529 $ - $ 254,782,529 Certificates of Deposit 1.9% 5,288,895 - 5,288,895 4.8% 15,639,605 - 15,639,605 Securities 18.5% 52,315,025 (27,880) 52,287,145 16.5% 53,325,572 (43,796) 53,281,776 Portfolio Total 100.0% $ 282,755,185 $ (27,880) $ 282,727,305 100.0% $ 323,747,706 $ (43,796) $ 323,703,910

Average Yield as of May 31, 2016 Average Yield as of February 29, 2016

TexPool 0.52% TexPool 0.47% Logic 0.54% Logic 0.48% Lone Star 0.53% Lone Star 0.45% Southside 0.49% Southside 0.45% Capital One 0.30% Capital One 0.30%

NOTES: 1) Yields for the above referenced accounts vary daily. 2) The benchmark for the Unrestricted and Restricted Funds is the 90 day U.S. Treasury Bill. As of May 31, 2016 the rate was 0.35%.

7 LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORT FOR THE QUARTER ENDED MAY 31, 2016

TexPool 9/23/1993 N/A N/A $ 223,347 $ 223,347 $ 211 $ $ $ $ 256,346 $ $ 256,346 TexPool Prime 9/23/1993 N/A N/A 7,752,166 7,752,166 9,051 - - - 4,197,474 - 4,197,474 Logic 9/03/1996 N/A N/A 125,159,474 125,159,474 162,299 - - - 115,165,249 - 115,165,249 Lone Star-Govt 3/29/2001 N/A N/A 1,190,496 1,190,496 154 - - - 21,917 - 21,917 Lone Star-Corporate 3/29/2001 N/A N/A 22,876 22,876 8 - - - 22,904 - 22,904 Lone Star-Corporate Plus 1/26/2001 N/A N/A 84,642,354 84,642,354 96,266 - - - 69,658,987 - 69,658,987 Southside - MMA 4/27/2011 N/A N/A 20,684,399 20,684,399 25,176 - - - 20,709,575 - 20,709,575 Capital One 8/12/2013 N/A N/A 15,107,417 15,107,417 11,396 - - - 15,118,813 - 15,118,813

TOTAL N/A N/A 254,782,529 254,782,529 304,561 - - - 225,151,265 - 225,151,265

CERTIFICATES OF DEPOSIT Comerica 5/29/2014 5/02/2016 10,000,000 0.64% 10,112,970 10,112,970 11,144 - 10,124,114 - - - - Comerica 9/03/2014 10/3/2016 4,000,000 0.73% 4,041,635 4,041,635 7,260 - - - 4,048,895 - 4,048,895 Frost Bank 10/28/2015 4/28/2017 245,000 0.90% 245,000 245,000 - - - - 245,000 - 245,000 Frost Bank 10/28/2015 4/28/2017 250,000 0.90% 250,000 250,000 - - - - 250,000 - 250,000 Frost Bank 10/29/2015 5/01/2017 250,000 0.90% 250,000 250,000 - - - - 250,000 - 250,000 Frost Bank 11/04/2015 5/04/2017 245,000 0.85% 245,000 245,000 - - - - 245,000 - 245,000 Frost Bank 11/04/2015 5/04/2017 250,000 0.85% 250,000 250,000 - - - - 250,000 - 250,000 - - - TOTAL 15,240,000 15,639,605 15,639,605 18,404 - 10,124,114 - 5,288,895 - 5,288,895

SECURITIES BOND 4/16/2014 04/15/2016 1,000,000 0.62% 1,000,550 1,000,000 - - 1,000,000 - - - - FHLB 2/12/2015 12/09/2016 4,000,000 0.70% 4,029,012 4,028,451 - - - 19,235 4,019,235 1,021 4,020,256 FFCB 3/04/2015 12/04/2017 3,000,000 1.09% 3,000,249 3,000,000 - - - - 3,000,000 - 3,000,000 FAMCA 9/08/2015 09/08/2017 2,000,000 1.00% 2,000,020 2,000,000 - - - - 2,000,000 258 2,000,258 FAMCA 1/26/2016 09/20/2016 3,000,000 0.53% 2,992,521 2,991,160 - - - (4,853) 2,995,147 1,121 2,996,268 FHLMC 1/26/2016 11/15/2016 4,000,000 0.58% 3,986,424 3,983,678 - - - (10,547) 3,989,453 2,335 3,991,788 FHLMC 1/27/2016 10/14/2016 3,000,000 0.56% 3,004,029 3,005,902 - - - 3,520 3,003,520 134 3,003,654 FHLB 2/12/2016 11/10/2016 8,000,000 0.49% 7,995,448 8,003,525 - - - 2,253 8,002,253 (3,821) 7,998,432 FHLMC 2/16/2016 10/13/2016 5,000,000 0.47% 4,985,875 4,985,050 - - - (9,072) 4,990,928 1,067 4,991,995 FHLMC 2/24/2016 11/07/2017 3,000,000 0.85% 2,996,394 3,000,000 - - - - 3,000,000 (5,052) 2,994,948 FAMCA 2/24/2016 09/28/2017 3,000,000 0.87% 2,991,537 2,994,545 - - - (4,585) 2,995,415 (1,955) 2,993,460 FFCB 10/26/2015 4/21/2017 3,000,000 0.57% 2,992,938 2,997,787 - - - (1,725) 2,998,275 (3,114) 2,995,161 FNMA 10/26/2015 4/27/2017 1,268,000 0.55% 1,272,889 1,276,474 - - - 6,631 1,274,631 (2,046) 1,272,585 FNMA 10/27/2015 4/27/2017 5,000,000 0.55% 5,019,280 5,033,230 - - - 26,003 5,026,003 (7,923) 5,018,080 FHLMC 10/27/2015 5/08/2017 5,000,000 0.51% 5,014,610 5,025,770 - - - 20,165 5,020,165 (9,905) 5,010,260

TOTAL 53,268,000 53,281,776 53,325,572 - 1,000,000 47,025 52,315,025 (27,880) 52,287,145

SUMMARY MONEY MARKET AND INVESTMENT POOLS 254,782,529 254,782,529 304,561 - - - 225,151,265 - 225,151,265 CERTIFICATES OF DEPOSIT 15,639,605 15,639,605 18,404 - 10,124,114 - 5,288,895 5,288,895 SECURITIES 53,281,776 53,325,572 - - 1,000,000 47,025 52,315,025 (27,880) 52,287,145 PORTFOLIO TOTAL $ 323,703,910 $ 323,747,706 $ 322,965 $ - $ 11,124,114 $ 47,025 $ 282,755,185 $ (27,880) $ 282,727,305

8 LONE STAR COLLEGE INVESTMENT PORTFOLIO COMPOSITION FOR THE QUARTER ENDED MAY 31, 2016

Texpool 1% Securities 18% CDs LSIP 2% 25%

MMA 13%

Logic 41%

Texpool LSIP Logic MMA CDs Securities

9 LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORT BY FUND FOR THE QUARTER ENDED MAY 31, 2016

FUND: OPERATING (UNRESTRICTED)

TexPool 9/23/1993 N/A N/A $ 14,019 $ 14,019 $ 35 $ - $ - $ - $ 46,841 $ - $ 46,841 TexPool Prime 9/23/1993 N/A N/A 7,721,638 7,721,638 9,011 - - - 4,166,906 - 4,166,906 Logic 9/03/1996 N/A N/A 20,420,271 20,420,271 20,184 - - - 10,175,456 - 10,175,456 Lone Star-Govt 3/29/2001 N/A N/A 1,189,956 1,189,956 153 - - - 21,377 - 21,377 Lone Star-Corporate 3/29/2001 N/A N/A 3 3 - - - - 3 - 3 Lone Star-Corporate Plus 1/26/2001 N/A N/A 35,316,161 35,316,161 17,824 - - - 8,292,726 - 8,292,726 Southside - MMA 4/27/2011 N/A N/A 15,646,691 15,646,691 19,044 - - - 15,665,735 - 15,665,735

TOTAL 80,308,739 80,308,739 66,251 - - - 38,369,044 - 38,369,044

TOTAL 14,000,000 14,399,605 14,399,605 $ 18,404 - 10,124,114 - 4,048,895 - 4,048,895

SECURITIES

BOND 4/16/2014 04/15/2016 1,000,000 0.62% 1,000,550 1,000,000 - - 1,000,000 - - - - FHLB 2/12/2015 12/09/2016 4,000,000 0.70% 4,029,012 4,028,451 - - - 19,235 4,019,235 1,021 4,020,256 FFCB 3/04/2015 12/04/2017 3,000,000 1.09% 3,000,249 3,000,000 - - - - 3,000,000 - 3,000,000 FAMCA 9/08/2015 09/08/2017 2,000,000 1.00% 2,000,020 2,000,000 - - 2,000,000 258 2,000,258 FAMCA 1/26/2016 09/20/2016 3,000,000 0.53% 2,992,521 2,991,160 - - (4,853) 2,995,147 1,121 2,996,268 FHLMC 1/26/2016 11/15/2016 4,000,000 0.58% 3,986,424 3,983,678 - - (10,547) 3,989,453 2,335 3,991,788 FHLMC 1/27/2016 10/14/2016 3,000,000 0.56% 3,004,029 3,005,902 - - 3,520 3,003,520 134 3,003,654 FHLB 2/12/2016 11/10/2016 8,000,000 0.49% 7,995,448 8,003,525 - - 2,253 8,002,253 (3,821) 7,998,432 FHLMC 2/16/2016 10/13/2016 5,000,000 0.47% 4,985,875 4,985,050 - - (9,072) 4,990,928 1,067 4,991,995 FHLMC 2/24/2016 11/07/2017 3,000,000 0.85% 2,996,394 3,000,000 - - 3,000,000 (5,052) 2,994,948 FAMCA 2/24/2016 09/28/2017 3,000,000 0.87% 2,991,537 2,994,545 - - (4,585) 2,995,415 (1,955) 2,993,460

TOTAL 39,000,000 38,982,059 38,992,311 - - 1,000,000 (4,049) 37,995,951 (4,892) 37,991,059

SUMMARY: MONEY MARKET AND INVESTMENT POOLS 80,308,739 80,308,739 66,251 - - - 38,369,044 - 38,369,044 CERTIFICATES OF DEPOSIT 14,399,605 14,399,605 18,404 - 10,124,114 - 4,048,895 - 4,048,895 SECURITIES 38,982,059 38,992,311 - - 1,000,000 (4,049) 37,995,951 (4,892) 37,991,059 PORTFOLIO TOTAL $ 133,690,403 $ 133,700,655 $ 84,655 $ - $ 11,124,114 $ (4,049) $ 80,413,890 $ (4,892) $ 80,408,998

10 LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORT BY FUND FOR THE QUARTER ENDED MAY 31, 2016

FUND: CONSTRUCTION IN PROGRESS

TexPool Prime N/A N/A $ 30,528 $ 30,528 $ 40 $ - $ - $ - $ 30,568 $ - $ 30,568 Logic-CIP GO Bonds N/A N/A 104,657,506 104,657,506 142,004 - - - 104,907,985 - 104,907,985 Logic-CIP MTN Bond N/A N/A 40,363 40,363 55 - - - 40,418 - 40,418 Lone Star-Corporate N/A N/A 9,545 9,545 12 - - - 9,557 - 9,557 Lone Star-Corporate Plus N/A N/A 8,265,879 8,265,879 10,947 - - - 8,276,826 - 8,276,826 Southside - MMA N/A N/A 5,037,708 5,037,708 6,132 - - - 5,043,840 - 5,043,840 Capital One-MMA N/A N/A 10,071,087 10,071,087 7,597 - - - 10,078,684 - 10,078,684

TOTAL 128,112,616 128,112,616 166,787 - - - 128,387,878 - 128,387,878

CERTIFICATES OF DEPOSIT Frost Bank 10/28/2015 4/28/2017 245,000 0.90% 245,000 245,000 - - - - 245,000 - 245,000 Frost Bank 10/28/2015 4/28/2017 250,000 0.90% 250,000 250,000 - - - - 250,000 - 250,000 Frost Bank 10/29/2015 5/01/2017 250,000 0.90% 250,000 250,000 - - - - 250,000 - 250,000 Frost Bank 11/04/2015 5/04/2017 245,000 0.85% 245,000 245,000 - - - - 245,000 - 245,000 Frost Bank 11/04/2015 5/04/2017 250,000 0.85% 250,000 250,000 - - - - 250,000 - 250,000

TOTAL 1,240,000 1,240,000 1,240,000 - - - - 1,240,000 - 1,240,000

SECURITIES FFCB 10/26/2015 4/21/2017 3,000,000 0.565% 2,992,938 2,997,787 - - - (1,725) 2,998,275 (3,114) 2,995,161 FNMA 10/26/2015 4/27/2017 1,268,000 0.545% 1,272,889 1,276,474 - - - 6,631 1,274,631 (2,046) 1,272,585 FNMA 10/27/2015 4/27/2017 5,000,000 0.548% 5,019,280 5,033,230 - - - 26,003 5,026,003 (7,923) 5,018,080 FHLMC 10/27/2015 5/08/2017 5,000,000 0.509% 5,014,610 5,025,770 - - - 20,165 5,020,165 (9,905) 5,010,260

TOTAL 14,268,000 14,299,717 14,333,261 - - - 51,074 14,319,074 (22,988) 14,296,086

SUMMARY: MONEY MARKET AND INVESTMENT POOLS 128,112,616 128,112,616 166,787 - - - 128,387,878 - 128,387,878 CERTIFICATES OF DEPOSIT 1,240,000 1,240,000 - - - 1,240,000 - 1,240,000 SECURITIES 14,299,717 14,333,261 - - 51,074 14,319,074 (22,988) 14,296,086 PORTFOLIO TOTAL $ 143,652,333 $ 143,685,877 $ 166,787 $ - $ - $ 51,074 $ 143,946,952 $ (22,988) $ 143,923,964

11 LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORT FOR THE QUARTER ENDED MAY 31, 2016

FUND: INTEREST & SINKING

Beginning Beginning Period Book / Market Transactions Ending Period Ending Purchase Maturity Face Buy Market Value Book Value Interest Securities Securities Disc. / Prem. Book Value Unrealized Market Value Date Date Amount Yield 2/29/2016 2/29/2016 Payments Purchased Matured Amortization 5/31/2016 Gain / (Loss) 5/31/2016 MONEY MARKET AND INVESTMENT POOLS TexPool N/A N/A $ 209,328 $ 209,328 176$ $ $ $ $ 209,505 $ $ 209,505 Logic N/A N/A 41,334 41,334 56 - - - 41,390 - 41,390 Lone Star-Govt N/A N/A 540 540 1 - - - 540 - 540 Lone Star-Corporate N/A N/A 13,328 13,328 16 - - - 13,344 - 13,344 Lone Star-Corporate Plus N/A N/A 41,060,314 41,060,314 67,495 - - - 53,089,435 - 53,089,435 Capital One-MMA N/A N/A 5,036,330 5,036,330 3,799 - - - 5,040,129 - 5,040,129

TOTAL 46,361,174 46,361,174 71,543 - - - 58,394,343 - 58,394,343

SUMMARY: MONEY MARKET AND INVESTMENT POOLS 46,361,174 46,361,174 71,543$ - - - 58,394,343 - 58,394,343 PORTFOLIO TOTAL $ 46,361,174 $ 46,361,174 71,543$ $ - $ - $ - $ 58,394,343 $ - $ 58,394,343

12 LONE STAR COLLEGE TOTAL INVESTMENT PORTFOLIO BOOK VALUE FOUR YEAR COMPARISON THROUGH MAY 31, 2016

350,000,000.00

300,000,000.00

250,000,000.00

200,000,000.00

150,000,000.00

100,000,000.00

50,000,000.00

0.00

This chart tracks LSC's total book value quarter-by-quarter to provide a historical perspective of the College's investment portfolio.

13 ACTUAL REVENUES AS A % OF BUDGET 9/1 THROUGH 5/31 100%

90% 83.7% 83.6% 82.1% 83.5% 79.3% 80%

70%

60%

50%

40%

30%

20%

10%

0% 2011-12 2012-13 2013-14 2014-15 2015-16

14 ACTUAL EXPENDITURES AS A % OF BUDGET 9/1 THROUGH 5/31 100%

90%

80%

70%

68.4% 68.1% 70.2% 70.0% 60% 68.0%

50%

40%

30%

20%

10%

0% 2011-12 2012-13 2013-14 2014-15 2015-16

15 LONE STAR COLLEGE

Statement of Revenues and Expenditures General and Auxiliary Funds YTD May 31, 2016 Unaudited PRIOR YEAR PRIOR YEAR % ACTUAL ACTUAL % ACTUAL FISCAL YTD TO BUDGET FISCAL YTD TO BUDGET BUDGET ACTUAL 75% FY ELAPSED 5/31/2015 75% FY ELAPSED

REVENUES:

State Appropriations $ 74,090,000 $ 52,905,428 71.4% $ 51,820,124 71.5% Tuition and Fees 111,840,000 89,035,826 79.6% 89,523,088 82.2% Taxes 125,260,000 124,279,286 99.2% 111,817,239 96.2% Investments 420,000 306,018 72.9% 285,245 81.5% Other 6,020,000 3,794,323 63.0% 3,599,119 61.5% Tuition/Growth Contingency 910,000 - 0.0% - 0.0%

Total Current Operations Revenues 318,540,000 270,320,881 84.9% 257,044,815 84.1%

Auxiliary Revenues 18,140,000 10,801,884 59.5% 11,111,195 74.1%

Total Revenues 336,680,000 281,122,765 83.5% 268,156,010 83.6%

Reserves 5,810,000 - 0.0% - 0.0%

Total Revenues and Reserves 342,490,000 281,122,765 268,156,010

EXPENDITURES:

Instruction-Academic 83,088,226 61,295,531 73.8% 59,382,035 75.6% Instruction-Workforce 30,155,665 24,085,389 79.9% 23,125,436 85.3% Public Service 757,194 554,196 73.2% 474,531 61.9% Academic Support 52,784,405 33,553,047 63.6% 34,954,988 61.7% Student Services 47,412,695 30,292,400 63.9% 28,507,264 65.2% Institutional Support 31,971,761 22,526,195 70.5% 24,162,635 70.9% Plant Operation and Maintenance 33,509,527 24,565,936 73.3% 23,774,949 66.2% Staff Benefits 27,110,527 21,048,314 77.6% 19,579,614 86.6% Growth Contingency 1,570,000 - 0.0% - 0.0%

Total Educational and General Expenditures 308,360,000 217,921,008 70.7% 213,961,452 71.0%

Repair, Replacement and Other Internally Designated 5,050,000 2,133,812 42.3% 1,653,594 32.7%

Auxiliary 18,580,000 12,191,651 65.6% 10,141,836 67.6%

Total Expenditures 331,990,000 232,246,471 70.0% 225,756,882 70.2%

Other Changes - Debt Service & Fund Transfers 10,500,000 6,979,844 6,913,344

Total Expenditures and Transfers 342,490,000 239,226,315 232,670,226

NET INCREASE (DECREASE) IN FUND BALANCES General Funds 440,000 43,286,217 34,516,425 Auxiliary Funds (440,000) (1,389,767) 969,359

TOTAL NET INCREASE (DECREASE) IN FUND BALANCES $ 0 $ 41,896,450 $ 35,485,784

16 LONE STAR COLLEGE

Balance Sheet May 31, 2016 Unaudited

GASB Memorandum Memorandum General & Reporting Totals Totals ASSETS Auxiliary Restricted Entries (*) Current Year Prior Year

Cash, cash equivalents & investments $ 67,341,713 $ 205,683,786 $ (8,367) $ 273,017,132 $ 324,025,713 Accounts receivable, net 11,353,898 3,997,394 5,269,673 20,620,965 17,543,190 Prepaid and deferred expenses 12,022,713 - 12,022,713 7,763,280 Inventories, at cost 13,437 - - 13,437 45,853 Capital assets, net - - 783,665,578 783,665,578 752,548,159

TOTAL ASSETS 90,731,761 209,681,180 788,926,884 1,089,339,825 1,101,926,195

Deferred Outflows - - 8,864,100 8,864,100 -

TOTAL ASSETS AND DEFERRED OUTFLOWS $ 90,731,761 $ 209,681,180 $ 797,790,984 $ 1,098,203,925 $ 1,101,926,195

LIABILITIES AND FUND BALANCES

LIABILITIES: Accounts payable & Accrued Absences Payable $ 1,921,064 $ 9,842,538 $ 11,763,602 $ 13,139,686 Deferred revenues 5,577,527 4,791,806 - 10,369,333 10,495,139 Accrued compensable absences payable - - - Accrued interest payable - 9,120,817 - 9,120,817 1,420,363 Bonds payable - - 736,603,657 736,603,657 755,555,177 Net Pension Liability - - 48,590,998 48,590,998 - Assets held in custody for others - 9,171,967 - 9,171,967 9,006,114

TOTAL LIABILITIES 7,498,591 32,927,128 785,194,655 825,620,374 789,616,479

Deferred Inflows - - 14,864,130 14,864,130 -

TOTAL LIABILITIES AND DEFERRED INFLOWS 7,498,591 32,927,128 800,058,785 840,484,504 789,616,479

TOTAL FUND BALANCES 83,233,170 176,754,052 (2,267,801) 257,719,421 312,309,716

TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 90,731,761 $ 209,681,180 $ 797,790,984 $ 1,098,203,925 $ 1,101,926,195

* Includes GASB (Governmental Accounting Standards Board) reporting entries related to Capital Assets, Long Term Debt, and Pensions

17 Financial Report and Consideration No. 2 (ACTION ITEM 5) Board Meeting 8-4-16

Request: Consideration of Adoption of the Recommended 2016-2017 Budgets

Chancellor’s That the Board of Trustees adopt the 2016-2017 recommended budgets and Recommendation: authorize the Chancellor to approve expenditure budget transfers among the funds, as necessary and allowed by law, as long as such transfers do not result in a change in the total expenditures budget of $347,662,000.

Rationale: Following several months of study, planning, development and evaluation, the administration, in consultation with the Board of Trustees, recommends a budget that accurately reflects the System’s educational plan for 2016- 2017.

The recommended budgets are as follows:

REVENUES:

SOURCE AMOUNT STATE ALLOCATIONS $74,051,000 STUDENT REVENUES 119,381,000 LOCAL TAXES 134,613,000 MISCELLANEOUS ACTIVITIES 19,617,000

TOTAL REVENUES $347,662,000

EXPENDITURES/USES:

OPERATING $301,350,000 OPERATING DEBT PAYMENT 7,500,000 REPAIRS AND REPLACEMENTS 5,562,000 STUDENT ACTIVITIES 2,760,000 TECHNOLOGY 12,380,000 CORPORATE COLLEGE 3,000,000 AUXILIARY 11,790,000 TOTAL EXPENDITURES/USES $344,342,000 ADDITIONS TO RESERVES 3,320,000 TOTAL EXPENDITURES/USES & $347,662,000 ADDITIONS TO RESERVES

2016-2017 is the second year of the biennium, thus the State allocations remain the same as 2015-2016. Student revenues reflect an estimated 3% growth in enrollments, credit tuition will be increased by $2 per credit hour and discipline-based differential fees will be increased an average $4 per credit hour. These increases in tuition and fees were previously approved by the Board of Trustees at the March 3, 2016 meeting.

Certified property values have not been received, but the preliminary rolls provided by the appraisal districts indicate that net taxable values will increase in both Harris and Montgomery Counties by an average of 8%. The 2016-2017 tax revenues are estimated using the same rate as the 2015- 2016 budget. Once the certified rolls have been received, a recommendation will be taken to the Board of Trustees regarding the tax rate in September. It is estimated that the tax rate will remain the same, or be slightly lower.

The 2016-2017 budget contains several initiatives in support of the College’s strategic priorities: Academic & Workforce Program Quality, Student Success, Culture, Partnerships and Financial Responsibility & Accountability.

Compensation recommendations included in the budget are as follows: • A 2% cost of living adjustment (minimum of $750) for all full-time employees hired prior to June 1, 2016, effective September 1, 2016 • A $2 per contact hour increase for adjunct faculty • A 2% increase for part-time staff • 20 new full-time faculty • A 7 % increase in group health insurance premiums

Fiscal Impact: The budget as presented is a balanced budget based on conservative revenue estimates.

Staff Resource: Steve Head 832-813-6515 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 3 (ACTION ITEM 6) Board Meeting 8-4-16

Request: Consideration of Approval of Proposed Salary Schedule Changes for Deans of Instruction and Master of Fine Arts

Chancellor’s That the Board of Trustees approve the salary schedule changes below Recommendation: with an effective date of September 1, 2016.

• Creation of band 091A for Deans of Instruction

• Creation of a separate faculty pay level for Masters of Fine Arts

Rationale: The new salary schedules address the challenges in recruiting academic deans and change the current faculty salary structure to recognize the Master of Fine Arts as a terminal degree in the field of study.

These changes were recommended by two Lone Star College committees and reviewed by Human Resources.

Fiscal Impact: Funds of approximately $90,000 for these changes are included in the recommended FY2016-17 budget.

Staff Resource: Link Alander 832-813-6832

9 Month Salary Schedule with MFA Level (175 days)

Current 9 Month Faculty Salary Schedule CURRENT New Hire Faculty Pay Structure - 9 Months (175 Days) Years of Experience Level 0 1 2 3 4 5 6 7 1 BA $40,000 $40,800 $41,616 $42,448 $43,297 $44,163 $45,046 $45,947 2 MA $45,000 $45,899 $46,817 $47,754 $48,709 $49,683 $50,677 $51,690 3 PhD $50,000 $51,001 $52,021 $53,061 $54,123 $55,205 $56,309 $57,435 4 Other $55,000 $56,101 $57,223 $58,367 $59,535 $60,726 $61,940 $63,179

9 Month Schedule with MFA New Hire Faculty Pay Structure - 9 Months (175 Days) Years of Experience Level 0 1 2 3 4 5 6 7 1 BA $40,000 $40,800 $41,616 $42,448 $43,297 $44,163 $45,046 $45,947 2 MA $45,000 $45,899 $46,817 $47,754 $48,709 $49,683 $50,677 $51,690 MFA $46,650 $47,583 $48,535 $49,505 $50,495 $51,505 $52,535 $53,586 3 PhD $50,000 $51,001 $52,021 $53,061 $54,123 $55,205 $56,309 $57,435 4 Other $55,000 $56,101 $57,223 $58,367 $59,535 $60,726 $61,940 $63,179

LSC _HRComp_07/21/2016 10.5 Month Salary Schedule with MFA Level (202 days)

Current 10.5 Month Faculty Salary Schedule CURRENT New Hire Faculty Pay Structure - 10.5 Months (202 Days) Years of Experience Level 0 1 2 3 4 5 6 7 1 BA $46,171 $47,095 $48,036 $48,997 $49,977 $50,977 $51,996 $53,036 2 MA $51,942 $52,981 $54,041 $55,122 $56,224 $57,348 $58,495 $59,665 3 PhD $57,715 $58,870 $60,047 $61,248 $62,473 $63,723 $64,997 $66,297 4 Other $63,487 $64,756 $66,051 $67,372 $68,720 $70,094 $71,496 $72,926

10.5 Month Schedule with MFA New Hire Faculty Pay Structure - 10.5 Months (202 Days) Years of Experience Level 0 1 2 3 4 5 6 7 1 BA $46,171 $47,095 $48,036 $48,997 $49,977 $50,977 $51,996 $53,036 2 MA $51,942 $52,981 $54,041 $55,122 $56,224 $57,348 $58,495 $59,665 MFA $53,847 $54,924 $56,023 $57,143 $58,286 $59,452 $60,641 $61,854 3 PhD $57,715 $58,870 $60,047 $61,248 $62,473 $63,723 $64,997 $66,297 4 Other $63,487 $64,756 $66,051 $67,372 $68,720 $70,094 $71,496 $72,926

LSC _HRComp_07/21/2016 12 Month Salary Schedule with MFA Level (229 days)

Current 12 Month Faculty Salary Schedule CURRENT New Hire Faculty Pay Structure - 12 Months (229 Days) Years of Experience Level 0 1 2 3 4 5 6 7 1 BA $52,343 $53,389 $54,457 $55,546 $56,657 $57,790 $58,946 $60,125 2 MA $58,885 $60,063 $61,264 $62,489 $63,739 $65,014 $66,314 $67,640 3 PhD $65,430 $66,738 $68,073 $69,435 $70,823 $72,240 $73,685 $75,158 4 Other $71,972 $73,412 $74,880 $76,378 $77,905 $79,463 $81,053 $82,674

12 Month Schedule with MFA New Hire Faculty Pay Structure - 12 Months (229 Days) Years of Experience Level 0 1 2 3 4 5 6 7 1 BA $52,343 $53,389 $54,457 $55,546 $56,657 $57,790 $58,946 $60,125 2 MA $58,885 $60,063 $61,264 $62,489 $63,739 $65,014 $66,314 $67,640 MFA $61,045 $62,266 $63,511 $64,781 $66,077 $67,398 $68,746 $70,121 3 PhD $65,430 $66,738 $68,073 $69,435 $70,823 $72,240 $73,685 $75,158 4 Other $71,972 $73,412 $74,880 $76,378 $77,905 $79,463 $81,053 $82,674

LSC _HRComp_07/21/2016 Non-Faculty Salary Schedule 2015-2016

GRADE OLD MIN MID MAX

011 SP1 $26,000 $31,800 $39,600 012 SP2 $27,000 $34,344 $42,768

013 SP3 $27,994 $37,092 $46,189 Non SP4 014 $30,233 $40,059 $49,885 - Exempt 021 CS1 $31,609 $41,882 $52,155 022 CS2 $36,889 $48,878 $60,867 023 CS3 $42,169 $55,874 $69,579 024 CS4 $47,449 $62,870 $78,291 031 TE1 $31,609 $41,882 $52,155 032 TE2 $36,889 $48,878 $60,867 033 TE3 $42,169 $55,874 $69,579 034 TE4 $47,449 $62,870 $78,291 041 CO1 $35,033 $46,419 $57,804 042 CO2 $39,246 $52,001 $64,756 043 CO3 $43,459 $57,583 $71,707 044 CO4 $47,672 $63,165 $78,659 051 AN1 $44,941 $59,547 $74,153 052 AN2 $51,591 $68,358 $85,125 053 AN3 $58,241 $77,169 $96,098 054 AN4 $64,891 $85,981 $107,070 061 PR1 $47,865 $63,421 $78,977 062 PR2 $55,665 $73,756 $91,847 063 PR3 $63,465 $84,091 $104,717 064 PR4 $71,265 $94,426 $117,587 071 SV1 $41,564 $55,072 $68,581 072 SV2 $44,058 $58,377 $72,695 073 SV3 $46,701 $61,879 $77,057 074 SV4 $49,503 $65,592 $81,681 081 MG1 $56,744 $75,186 $93,628 082 MG2 $60,360 $79,977 $99,594 083 MG3 $63,976 $84,768 $105,560 Contracted 084 MG4 $67,592 $89,559 $111,527 091 EX1 $84,502 $111,965 $139,428 91A $97,177 $128,760 $160,342 092 EX2 $103,082 $136,584 $170,085 093 EX3 $116,662 $154,577 $192,492 094 EX4 $125,741 $166,607 $207,473 Financial Report and Consideration No. 4 (ACTION ITEM 7) Board Meeting 8-4-16

Request: Consideration of Approval of Annual Purchases of Technology Hardware, Software, and Services

Chancellor’s That the Board of Trustees approve the purchase of technology hardware, Recommendation: software, and services in a total not-to-exceed sum of $10,000,000 during FY 2016-17. The Chancellor also recommends that the Board authorize him or a designee to execute individual contracts in excess of $100,000, but less than $500,000, without obtaining the Board’s individual pre- approval for each such contract. The Chancellor finally recommends to the Board that it expressly authorize him or a designee to execute the contracts detailed in Appendix A for the not-to-exceed sums listed therein.

Rationale: To enhance student success, the College has an aggressive plan to meet the technology needs of faculty, staff, and students. This pre-approval will enable the Office of Technology Services to acquire goods and services needed to upgrade enterprise systems and replace equipment that has reached end-of-life, as well as procure required consulting services.

Approving the technology hardware, software and services in advance dramatically improves project schedules and enables faculty, students, and staff to receive updated technology in the timeliest and most cost-effective manner.

The purchase of technology hardware, software, and services will be made in accordance with: • Texas Education Code 44.031, through competitive bid processes, or • Texas Government Code, Subchapter F, Sections 271.101-102, through Board approved purchasing cooperatives (upon completion of market analysis), or • Texas Government Code 2254.003, or • Any other method approved by state law.

The Chancellor also represents to the Board that no combination of contracts, purchases, or expenditures under this Board Agenda Item will exceed $10,000,000. The Chancellor finally represents that funds from general obligation bonds will not be used for any expense relying on this Board Agenda Item.

Fiscal Impact: Funds for these purchases are included in the recommended FY 2016-17 operating and technology fund budgets.

Staff Resource: Link Alander 832-813-6832 Carin Hutchins 832-813-6737

APPENDIX A Support, License Agreements, and Maintenance Contracts Exceeding $500,000 for Which the Chancellor Seeks Pre-Approval

Item Not-to-Exceed Amount Service Now Enterprise License Agreement $1,000,000 EMC VMware Enterprise License Agreement $750,000 Cisco Smartnet Enterprise License Agreement $750,000 Oracle-PeopleSoft Enterprise License Agreement $2,000,000 Microsoft Enterprise License Agreement $750,000

Financial Report and Consideration No. 5 (ACTION ITEM 8) Board Meeting 8-4-16

Request: Consideration of Approval of Annual Purchases of Bond-Funded Construction and Related Services

Chancellor’s That the Board of Trustees approve the purchase of bond-funded Recommendation: construction and construction-related services in a total sum not exceeding $3,000,000 during FY 2016-17. The Chancellor also recommends that the Board authorize him or a designee to execute individual contracts in excess of $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each individual contract. Contract sums exceeding $500,000 will be individually presented to the Board for consideration of approval.

Rationale: This pre-approval of annual purchases of bond-funded construction and related services is necessary to respond expeditiously to construction requirements for projects with specific scheduling constraints, or which may develop into an emergency if delayed.

Approving the purchase of bond-funded construction and related services in advance will enable the Chancellor to address schedule constraints and meet project delivery deadlines. The purchase of these services will be made in accordance with procurement methods approved by state law and allowed by board policy including, but not limited to, competitive bids, requests for qualifications, and purchasing cooperative contract awards to area job order contractors. The Chancellor or a designee will also ensure that bond funds are only depleted in a manner consistent with the bond order of the College authorizing the series or series of bonds and the bond propositions approved at the November 4, 2014 election authorizing the purposes for which the bonds may be issued.

The Chancellor also represents to the Board that no combination of contracts, purchases, or expenditures under this Board Agenda Item will exceed $3,000,000.

Fiscal Impact: Funds for these purchases are available from the General Obligation Bonds, series 2015A, or any other general obligation bonds that may be issued during FY 2016-17.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 6 (ACTION ITEM 9) Board Meeting 8-4-16

Request: Consideration of Approval of Annual Purchases of Construction and Related Services

Chancellor’s That the Board of Trustees approve the purchase of construction and Recommendation: construction-related services in a total sum not exceeding $7,000,000 during FY 2016-17. The Chancellor also recommends that the Board authorize him or a designee to execute individual contracts in excess of $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract. Contract sums exceeding $500,000 will be individually presented to the Board for consideration of approval.

Rationale: This pre-approval of annual purchases of construction and related services for renovation, minor construction, and repair and replacement (R&R) projects is necessary to respond expeditiously to construction requirements for projects with specific scheduling constraints, or which may develop into an emergency if delayed.

Approving the purchase of construction and related services in advance will enable the Chancellor to address schedule constraints and meet project delivery deadlines. The purchase of these services will be made in accordance with procurement methods approved by state law and allowed by board policy including, but not limited to competitive bids, requests for qualifications, and purchasing cooperative contract awards to area job order contractors.

The Chancellor also represents to the Board that no combination of contracts, purchases, or expenditures under this Board Agenda Item will exceed $7,000,000. The Chancellor finally represents that funds from general obligation bonds will not be used for any expense relying on this Board Agenda Item.

Fiscal Impact: Funds for these purchases are included in the recommended FY 2016-17 operating or auxiliary budgets.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 7 (ACTION ITEM 10) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Agreements to Purchase Elevator Maintenance, Safety Inspections, and Repair Services

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to Recommendation: negotiate and execute agreements for the purchase of elevator maintenance, safety inspections, and repair services from the vendors listed below for a total not-to-exceed amount of $800,000 and a contract term no longer than five years. The Chancellor recommends that the two vendors with the highest evaluation scores be awarded the contracts for Request for Proposals (“RFP”) No. 430.

Total Amount Vendor Address (Max 5-year term) 4607 World Houston Parkway, Suite 150 Kone, Inc. Houston, TX 77032 $550,000 Southwest 11811 North Freeway Elevator d/b/a Suite 222 Oracle Elevator Houston, TX 77060 $250,000

The initial contract terms shall be for three years with an option to renew for two additional one-year periods.

Rationale: The College’s elevators require monthly maintenance, annual safety inspections and repairs. The College will maintain and repair its elevators while complying with original design and manufacturer recommendations. These services will ensure that College elevators are maintained with consideration for peak performance, safety and cleanliness. Timely safety inspections will certify that the equipment meets all applicable state regulations and safety codes.

In compliance with the provisions of Texas Education Code §44.031 (a), RFP No. 430 was publicly advertised and issued to 71 bidders and seven responses were received. The initial evaluations of the proposals were conducted based on pricing, qualifications, experience, references, quality of services, extent to which certified historically underutilized businesses (HUB), minority and/or veteran or women-owned businesses are utilized, past performance, long-term cost, enhanced services, and completeness and thoroughness of response. On-site presentations were made by the three firms receiving the highest proposal scores. Fiscal Impact: Funds for these purchases are included in the recommended FY 2016-17 budget. Funds for subsequent fiscal years will be included in future proposed budgets.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 8 (ACTION ITEM 11) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract to Purchase Pressure Washing Services

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to Recommendation: negotiate and execute a contract to purchase pressure washing services from Tier One Property Services, L.L.C. d/b/a Aztec Facility Services, 11000 S. Wilcrest Drive Suite 125, Houston, TX 77099, for an amount not-to-exceed $1,500,000 over five years.

Rationale: Lone Star College (“LSC”) requires the use of pressure washing services to maintain its high standards of cleanliness in the building exteriors and parking areas. The purpose of this contract is to establish pricing for a multi-year contract for all buildings and parking areas on an as needed basis. The contract does not obligate LSC to purchase a fixed amount of services over the term of the contract, but rather it will establish the pricing, terms, and conditions and specifications when the services are required.

In compliance with the provisions of Texas Government Code 44.031 (a), a Request for Proposals (RFP #431) was publicly advertised and issued to 98 bidders and three responses were received. The evaluation of the proposals was conducted based on cost; qualifications; experience and service needs met; references; quality of services; the extent to which certified historically underutilized business (HUB), minority and/or veteran or women-owned businesses are utilized; past performance; long- term cost; and enhanced services/completeness and thoroughness of response. It is recommended that the firm with the highest evaluation score be awarded the contract.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2016-17 budget. Funds for subsequent fiscal years will be included in future proposed budgets.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 9 (ACTION ITEM 12) Board Meeting 8-4-16

Request: Consideration of Approval to Purchase Library Materials, Supplies, Services, and Resource Sharing Membership Fees for FY 2016-17

Chancellor’s That the Board of Trustees approve the purchase of library materials, Recommendation: supplies, services, and resource sharing membership fees for FY 2016-17 in an amount not-to-exceed $1,287,000, and authorize the Chancellor or designee to execute any agreements related to these purchases including individual contracts in excess of $100,000.

Rationale: Library materials consist of serial and journal subscriptions (electronic databases, digital content, and information products), books, e-books, and media. This purchase also includes library services (periodical jobber and binding services), library equipment and supplies, and library or resource sharing membership fees and services provided by the Texas State Library and Archives Commission. The College uses these materials and services to support the faculty and student needs at the six main college libraries and associated centers.

As stipulated in House Bill 962, which was effective September 1, 2009, Education Code 44.031 does not apply to a purchase, acquisition, or license of library goods and services. Such purchases can be made in any manner authorized by law including, but not limited to a request for proposal process, statewide purchasing contracts and library or resource-sharing programs; however, the best value standard as defined by Texas Government Code Chapter 2155.074 must be met.

Fiscal Impact: Funds for these purchases are included in the recommended FY 2016-17 budgets.

Staff Resource: Carin Hutchins 832-813-6737

Financial Report and Consideration No. 10 (ACTION ITEM 13) Board Meeting 8-4-16

Request: Consideration of Approval to Renew the Annual Insurance Policies for FY 2016-17 and the Agreements for the Administration of Student Liability and Medical Insurance

Chancellor’s That the Board of Trustees approve the renewal of the annual insurance Recommendation: policies for FY 2016-17 with estimated premiums totaling $2.7 million for the coverage year as summarized in Appendix A, and the agreements for the administration of student liability and medical insurance outlined below.

Rationale: Lone Star College’s (“LSC”) current insurance policies provide comprehensive liability, property and casualty coverage. LSC requested competitive quotes from all available insurance carriers in the market. Proposals were evaluated for the adequacy of the coverage terms, deductible options and annual cost.

It is recommended that the Board approve the purchase of the insurance policies for the period September 1, 2016 through August 31, 2017 as outlined in Appendix A. Additional details of the specific coverage are provided in Appendix B.

STUDENT COVERAGE

Policies are made available to students that provide medical professional liability insurance for participation in health occupation internships, student health insurance for international students on F-1 visas, student interns and voluntary domestic students. Premiums for sponsored study-abroad programs are paid from the System’s approved budgets. Premiums for the Medical Professional Liability are collected when the student registers for the required class. Premiums for the student health insurance for F-1 visa students, student interns and voluntary domestic students are paid directly to the Student Health Insurance Plan administrator, Academic HealthPlans. It is recommended that the Board approve the following products for students:

(RENEWAL) Medical Professional Liability The policy, provided by the current and recommended carrier, Chicago Insurance Company, provides a policy for medical professional liability of $1,000,000 for each incident with a $3,000,000 aggregate for students participating in health occupation internships. The coverage is for claims arising out of real or alleged malpractice when the injury claimed is the result of professional error, accident, or omission. The current $12 premium per student will not be increased.

(RENEWAL) Student Health Insurance Plan Medical Insurance (International Students on F-1 Visas and Student Interns) The Student Health Insurance Plan, provided by the current and recommended carrier, Blue Cross and Blue Shield of Texas and administered by Academic HealthPlans, This insurance plan protects insured students on or off campus for weekends, holidays, summer vacations, at home or while traveling, 24 hours per day, for the contract period. This plan is compatible with the Affordable Care Act. Students attending LSC on F-1 Visas are required to have medical insurance. In addition, the majority of the System’s health occupations affiliation partners require student interns to carry medical insurance in order to participate in the program. The plan is administered by Academic Health Plans (AHP). The annual health insurance premium is $2,100, an increase of $400 (23.5%) over the current premium.

Fiscal Impact: Funds for insurance policy premiums are included in the recommended FY 2016-17 budget.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

APPENDIX A Insurance Coverage Recommendations for 2016-2017

Annual Annual Premium Premium Change Description Insurance Company FY15-16 FY16-17 Amount %

Liability Policies United Educators Risk Commercial General Liability-Primary $131,789 $132,743 $954 0.72% Retention Group

Educators Legal Liability United Educators Risk $233,721 $244,737 $11,016 4.71% Retention Group

Excess Employers Liability. United Educators Risk $117,899 $117,577 ($322) -0.27% Retention Group

Medical Professional Liability-Dental $18,000 $18,000 $0 0.00% Evanston Insurance Co.

Automobile Liability-Fleet and Truck Driving Texas Political Subdivisions $151,453 $145,032 ($6,421) -4.24% Academy (TPS)

Statutory WC & Employers' Liability Texas Political Subdivisions $524,170 $539,865 $15,695 2.99% (TPS)

Property & Equipment

Fire & Extended Coverage & Equipment Liberty Mutual Fire $1,208,904 $1,415,917 $207,013 17.12% Breakdown Insurance Company

Inland Marine-Mobile Equipment Hanover Insurance $9,805 $12,146 $2,341 23.88% Company

Fine Arts & Small Museums ACE Fire Underwriters $1,125 $1,125 $0 0.00% Insurance Co.

Commercial Crime Great American Insurance Employee Dishonesty $11,591 $11,591 $0 0.00% Co.

Foreign Travel Policies ACE American Insurance International Travel $7,526 $13,181 $5,655 75.14% Co.

Kidnap and Ransom Insurance Policy Hiscox Insurance Company $5,800 $5,437 ($363) -6.26%

Foreign Liability ACE USA American $4,244 $5,375 $1,131 26.65% Insurance Co.

TOTAL $2,426,027 $2,662,726 $236,699 9.76% APPENDIX B System-Wide Insurance Coverage Details for 2016-2017

(RENEWAL) General Liability (Including Police, Professional, Child Care & Multimedia Liability) The policy, provided by the current and recommended carrier United Educators Risk Retention Group, Inc. (UE), includes a $1,000,000 combined single limit for bodily injury and property damage with an annual aggregate of $3,000,000. The UE policy provides broader comprehensive coverage than other available general liability policies in the market. The annual premium is $132,700, an increase of $1,000 (.76%) over the current premium. The increase is due to a general rate increase as well as an increase in the number of employees, students, vehicles and other property covered by the policy.

(RENEWAL) Educators Legal Liability & Employment Practices Liability The policy, provided by the current and recommended carrier United Educators Risk Retention Group, Inc. (UE), includes professional liability coverage up to a limit of $5,000,000 for each claim with an annual aggregate coverage of $5,000,000. The self-insured retention is $100,000 per claim. The UE policy provides broader comprehensive coverage than other available professional liability policies in the market. The annual premium is $244,700, an increase of $11,000 (4.71%) over the current premium. The increase is due to increased claims activity and legal exposure for board members (industry wide), as well as an increase in the number of employees covered under the policy. (RENEWAL) Excess Liability The policy, provided by the current and recommended carrier United Educators Risk Retention Group, Inc. (UE), provides up to $5,000,000 of coverage for claims in excess of the primary General Liability, Automobile Liability and Employer’s Liability policy limits. The annual premium is $117,600, a decrease of $300 (.25%) under the current premium.

(RENEWAL) Medical Professional Liability (Dental Hygiene Clinic & Dentists at LSC- Kingwood) The policy, provided by the current and recommended carrier Evanston Insurance Company, includes professional liability coverage up to $1,000,000 with a $5,000 deductible for each claim and an annual aggregate coverage of $3,000,000. The current $18,000 premium will not be increased.

(RENEWAL) Automobile Liability (Private Passenger & Light Commercial Vehicles) and Automobile Liability (Transportation Institute at LSC-North Harris) The policy, provided by the current and recommended self-insurance fund, Texas Political Subdivisions (TPS), provides coverage for the System’s vehicle fleet and for the vehicles used for instructional purposes by the Transportation Institute at LSC-North Harris. The automobile liability coverage provides a $1,000,000 combined single limit for bodily injury, property damage, and damage to rental vehicles. The collision and comprehensive coverage provides actual cash value of the property subject to a $1,000 deductible per occurrence. TPS is a joint self-insurance fund and the System will enter into an interlocal agreement with TPS to participate in the fund’s plan. The System’s portion of funding for the program is $145,000, a decrease of $6,000 (3.97%) under the current premium. The decrease is due to a rate reduction per vehicle.

(RENEWAL) Workers’ Compensation & Employer’s Liability The policy, provided by the current and recommended self-insurance fund, Texas Political Subdivisions (TPS), provides coverage for $1,000,000 bodily injury by accident and $1,000,000 bodily injury by disease (each employee). The bodily injury by disease coverage has a $1,000,000 policy limit. TPS is a joint self-insurance fund. An interlocal agreement with TPS will allow the System to participate in the fund’s plan. The annual payment to the fund is $539,900, an increase of $15,700 (2.99%) over the current premium. The increase is due to an increase in payroll.

(RENEWAL) Property (Fire & Extended Coverage) & Equipment Breakdown (Boiler & Machinery) The policy, provided by the current and recommended carrier Liberty Mutual Fire Insurance Company, provides coverage for the System’s real and personal property valued at approximately $1.3 billion, subject to a cumulative deductible for each occurrence of $25,000 for fire, $100,000 for flood, $100,000 for earth movement, $25,000 for breakdown of heating, air conditioning and electrical equipment and 2% of the value of covered property for wind damage associated with a named storm. This policy is subject to a $500,000,000 Real Property Loss Limit for any one occurrence. The sub-limit for extra expense coverage is $10,000,000. The annual premium is $1.4 million, an increase of $207,000 (17.35%) over the current premium. The increase is due to an increase in total property value based on a current professional property appraisal completed for the entire Lone Star College System and addition of new construction for FY17.

(RENEWAL) Inland Marine The policy, provided by the current and recommended carrier Hanover Insurance Company, provides physical damage coverage for the replacement cost value of scheduled mobile equipment subject to a $1,000 deductible per occurrence. The annual premium is $12,100, an increase of $2,300 (23.47%) over the current premium. The increase is due to an increase in insured mobile equipment.

(RENEWAL) Fine Arts & Small Museums The policy, provided by the current and recommended carrier ACE Fire Underwriters Insurance Company, provides coverage for fine art exhibitions at campus galleries with a limit of $500,000 for each loss. With the exception of outdoor sculptures, the deductible is $1,000 per claim. Outdoor sculptures have a $2,500 deductible. The current $1,100 premium will not be increased.

(RENEWAL) Commercial Crime The policy, provided by the current and recommended carrier Great American Insurance Company, provides coverage for employee dishonesty, robbery and computer fraud. The policy limit is $1,000,000 for acts of employee dishonesty, forgery or alteration, loss of money and securities inside and outside the premises, computer fraud and funds transfer fraud. The deductible is $100,000 per occurrence. The current $11,600premium will not be increased.

(RENEWAL) Foreign Travel Policy The policy, provided by the current and recommended carrier, ACE American Insurance Company, provides a general liability policy of $1,000,000 for each occurrence of bodily injury and property damage with a $2,000,000 general aggregate limit. Coverage includes $1,000,000 for contingent automobile liability, $50,000 for hired automobile physical damage; $1,000,000 for voluntary compensation benefits, $1,000,000 coverage for executive assistance services, $100,000 coverage for accidental death & dismemberment, and $25,000 coverage for medical expenses. The annual premium is $5,400, an increase of $1,100 (26.6%) over the current premium. The increase is due to an increase in travel areas and the international market.

(RENEWAL) Kidnap and Ransom Insurance Policy The policy, provided by the current and recommended carrier, Hiscox Insurance Company, Inc., provides worldwide ransom and kidnap coverage for directors, officers, trustees, employees, volunteers, students, and interns. There is a limit of $5,000,000 for each insured event of ransom, loss-in-transit and additional expenses. The annual premium is $5,400, a decrease of $400 (6.9%) under the current premium.

(RENEWAL) Travel Insurance (Out of the Country Medical Insurance, Study Abroad & Faculty International Explorations) The policy, provided by the current and recommended carrier, ACE USA American Insurance Company, provides coverage for primary accident & sickness, emergency medical evacuation, repatriation of remains, emergency reunion, accidental death & dismemberment and 24-hour international emergency assistance for students, faculty and staff traveling outside the United States for study abroad or other educational purposes. The plan is administered by Academic Health Plans (AHP). The limit for accident or sickness expense benefits is $250,000 with no deductible per covered accident or sickness. The annual premium is $13,200, an increase of $5,900 (80.8%) over the current premium. The increase is due to increased travel and the international market. Financial Report and Consideration No. 11 (ACTION ITEM 14) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Additional Agreements or Amendments to Existing Agreements on behalf of Lone Star College for the Purchase of Electricity Services

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to Recommendation: negotiate and execute additional agreements or amendments to existing agreements on behalf of Lone Star College with the Texas General Land Office (“GLO”), Stephen F. Austin Building, 1700 North Congress Avenue, Austin, Texas 78701, to purchase electricity services for a period not-to-exceed 60 months, beginning July 2019 through June 2024.

Rationale: Lone Star College’s (the “College” or “LSC”) current electricity supplier is Energy For Schools (“EFS”), a political subdivision organized under the authority of the Texas Local Government Code for the purpose of negotiating the purchase of electricity services on behalf of its members. The Board of Trustees approved the College’s membership in EFS in December 2003. EFS is currently buying LSC’s electricity from the GLO.

At the December 3, 2015 meeting, the Board of Trustees approved a similar item for the period December 4, 2015, through June 30, 2019. The previous agreement with EFS has expired. It was effective July 1, 2014 and ended June 30, 2016 and electricity was provided at a rate of $0.06749 per kWh. The current agreement with EFS, effective July 1, 2016 and ending June 30, 2019, provides electricity at a rate of $0.05685 per kWh. The current market rates for electricity after June 30, 2019 vary between $0.040 and $0.045 per kWh, approximately 20% below LSC’s current rate.

At this time, EFS is only willing to enter into contracts through June 2020. By executing a contract directly with the GLO, the significant price savings can be extended to June 2024.

Upon approval by the Board of Trustees, the Chancellor or designee will negotiate and execute a new agreement for electricity services for the College at a rate to be quoted by GLO for the period beginning July 1, 2019 for up to 60 months, or June 30, 2024. This rate must be accepted the same day it is received in order to execute a fixed rate agreement. In addition, as additional facilities open after June 30, 2019, the Chancellor or designee will negotiate and execute new agreements or amendments to existing agreements based on the most favorable terms and conditions available. LSC will not execute a contract unless there is at least a 15% reduction below the current contract price.

This purchase is in accordance with Texas Government Code, Subchapter F, Sections 271.101-102, which allows a local government to participate in a cooperative purchasing program with another local cooperative organization.

Fiscal Impact: Electricity purchases under the current electrical agreement for FY 2016- 17 are projected to be approximately $4,872,000. Based on the forecasted volume of electricity purchases in June 2019 and a 20% reduction in the rate from the current contract, LSC could save approximately $800,000.

Staff Resource Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 12 (ACTION ITEM 15) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract for Independent Audit Services

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to Recommendation: negotiate and execute a contract with the independent audit firm, Whitley Penn, LLP, 3411 Richmond Avenue, Suite 500, Houston, Texas 77046, for independent audit services in an amount not-to-exceed $220,000 for the FY 2016 and 2017 audits.

Rationale: Lone Star College submits annual audited financial statements prepared in accordance with generally accepted accounting principles and in conformance with the Texas Higher Education Coordinating Board’s Annual Financial Reporting Requirements for Texas Public Community and Junior Colleges.

On June 6, 2013, the Board of Trustees approved the Board Audit Committee to select a firm to provide independent audit services through a formal Request for Qualifications process in compliance with Texas Government Code 44.301 (a). Whitley Penn was selected to perform the independent audit services and has provided the services for the last three fiscal years.

Fiscal Impact: Funds for the annual audit are included in the FY 2015-16 budget. Funds for subsequent fiscal years will be included in future proposed budgets.

Staff Resource: Carin Hutchins 832-813-6737

Financial Report and Consideration No. 13 (ACTION ITEM 16) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract to Purchase Classification Services

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to Recommendation: negotiate and execute a contract to purchase classification services from Precision Task Group, 9801 Westheimer, Suite 803, Houston, Texas 77042, in a not-to-exceed amount of $294,700.

Rationale: Employee classification and performance are key issues that impact Lone Star College’s (“College”) future success as a quality academic institution. It is a priority for the College to design a classification system that is easy to understand and communicate.

This project will develop a decision band matrix approach to staff and administrator classifications. In addition, the project will develop a classification system that is easy to understand with clear job descriptions and job families.

This purchase is in compliance with the requirements of Texas Education Code §44.031 (a). The Request for Proposals (RFP #440) was issued to eighteen (18) classification services providers and three (3) responses were received. Vendor proposals were evaluated based on cost, qualifications, experience, commitment of personnel, the quality of services, relevant references and various other factors. All firms were invited to a presentation/interview. It is recommended that the firm with the highest evaluation score be awarded the contract.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2016-17 budget.

Staff Resource: Link Alander 832-813-6832 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 14 (ACTION ITEM 17) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-CyFair Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to execute Recommendation: a contract amendment with M. Arthur Gensler Jr. & Associates, Inc. dba Gensler (“Gensler”), 711 Louisiana Street #300, Houston, Texas 77002, for the purchase of $204,631 in additional architectural services and a revised total contract amount of $1,623,381.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved Gensler to provide architectural services for projects at LSC-CyFair through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

Gensler was approved to provide these services for Phase 1, Group 1A projects at LSC-CyFair and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, heating, ventilation, and air conditioning (HVAC), and civil engineering.

This amendment provides for additional services including, but not limited to furniture design, graphics design, and printing.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 15 (ACTION ITEM 18) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-Kingwood Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to execute Recommendation: a contract amendment with WHR Architects, Inc. (“WHR”),111 Louisiana Street #26, Houston, Texas 77002, for the purchase of $198,907 in additional architectural services and a revised total contract amount of $1,241,361.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved WHR to provide architectural services for projects at LSC-Kingwood through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

WHR was approved to provide these services for Phase 1, Group 2 projects at LSC-Kingwood, and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, heating, ventilation, and air conditioning (HVAC), and civil engineering.

This amendment provides for additional services including, but not limited to additional civil engineering services, furniture design, graphic design, and printing.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 16 (ACTION ITEM 19) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-Montgomery Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to execute Recommendation: a contract amendment with Smith & Company Architects, 1500 McGowen Street, Suite 150, Houston, Texas 77004, for the purchase of $128,810 in additional architectural services and a revised total contract amount of $608,010.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved Smith & Company Architects to provide design services for LSC-Montgomery projects through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

Smith & Company Architects was approved to provide services for the Phase 1, Group 3 projects at LSC-Montgomery, and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, heating, ventilation, and air conditioning (HVAC), and civil engineering.

This amendment provides for additional services including, but not limited to expanded traffic engineering services, furniture design, graphics design, and printing.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 17 (ACTION ITEM 20) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-North Harris Architectural Firm for Design Services Related to the 2014 General Obligation Bond Construction Program

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to execute Recommendation: a contract amendment with PBK Architects, Inc., 11 Greenway Plaza #2210, Houston, Texas 77046, for the purchase of additional architectural services in an amount not-to-exceed $409,629 for a total contract sum of $1,550,629. The Chancellor also recommends the Board expressly authorize this contract under Texas Education Code Section 51.9337(f), which requires the Board to expressly authorize amendments that increase a total contract sum in excess of $1,000,000.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved PBK Architects, Inc. to provide architectural services for projects at LSC-North Harris through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

PBK Architects, Inc. was approved to provide these services for the projects at LSC-North Harris, and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, HVAC, and civil engineering.

This amendment provides for additional services including, but not limited to electrical service relocation, central plant expansion, transportation infrastructure due diligence, and loop road relocation.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 18 (ACTION ITEM 21) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-Tomball Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to execute Recommendation: a contract amendment with Page Southerland Page, Inc. d/b/a Page (“Page”), 1100 Louisiana, Suite 1, Houston, Texas 77002, for the purchase of $216,180 in additional architectural services and a revised total contract amount of $519,180.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved Page to provide design services for LSC-Tomball projects through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

Page was approved to provide these services for the Phase 1, Group 5 projects at LSC-Tomball, and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, heating, ventilation, and air conditioning (HVAC), and civil engineering.

This amendment provides for additional services including, but not limited to design and construction administration for the buildout of the surgical technology area, enhanced lab design, furniture design, and printing.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 19 (ACTION ITEM 22) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-University Park Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to execute Recommendation: a contract amendment with Kirksey Architecture, 6909 Portwest Drive, Houston, Texas, 77024, for the purchase of $115,919 in additional architectural services and a revised total contract amount of $1,006,719. The Chancellor also recommends the Board expressly authorize this contract under Texas Education Code Section 51.9337(f), which requires the Board to expressly authorize amendments that increase a total contract sum in excess of $1,000,000.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved Kirksey Architecture to provide design services for LSC-University Park projects through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

Kirksey Architecture was approved to provide these services for the Phase 1, Group 6A projects at LSC-University Park, and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, heating, ventilation, and air conditioning (HVAC), and civil engineering.

This amendment provides for additional services including furniture design, exterior signage, interior graphics, and printing.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 20 (ACTION ITEM 23) Board Meeting 8-4-16

Request: Consideration of Ratification Authorizing the Chancellor’s or Designee’s Execution of a Contract with the LSC-Kingwood and LSC-North Harris Commissioning Firm for Services Related to the 2014 General Obligation Bond Construction Program

Chancellor’s That the Board of Trustees ratify the Chancellor’s or designee’s execution Recommendation: of a contract with Page Southerland Page, Inc. d/b/a Page (“Page”), 1100 Louisiana, Suite 1, Houston, Texas 77002, for the purchase of commissioning agent services in a sum not exceeding $365,420.

Rationale: At the October 1, 2015 meeting, the Board of Trustees approved Page to provide commissioning agent services for projects at LSC-Kingwood and LSC-North Harris through a formal Request for Qualifications process in compliance with Texas Government Code 2254.004.

This contract provides for the design phase services. Construction phase services will be brought back to the Board of Trustees for approval at a future meeting.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 21 (ACTION ITEM 24) Board Meeting 8-4-16

Request: Consideration of Ratification Authorizing the Chancellor’s or Designee’s Execution of a Contract with the LSC-Montgomery and LSC-Tomball Commissioning Firm for Services Related to the 2014 General Obligation Bond Construction Program

Chancellor’s That the Board of Trustees ratify the Chancellor’s or designee’s execution Recommendation: of a contract with Affiliated Engineers, Inc., 1 East Greenway Plaza, Houston, Texas 77046, for the purchase of commissioning agent services in a sum not exceeding $218,080.

Rationale: At the October 1, 2015 meeting, the Board of Trustees approved Affiliated Engineers, Inc. to provide commissioning agent services for projects at LSC-Montgomery and LSC-Tomball through a formal Request for Qualifications process in compliance with Texas Government Code 2254.004.

This contract provides for the design phase services. Construction phase services will be brought back to the Board of Trustees for approval at a future meeting.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 22 (ACTION ITEM 25) Board Meeting 8-4-16

Request: Consideration of Ratification of the Chancellor’s or Designee’s Execution of a Contract with the LSC-CyFair and LSC-University Park Commissioning Firm for Services Related to the 2014 General Obligation Bond Construction Program

Chancellor’s That the Board of Trustees ratify the Chancellor’s or designee’s execution Recommendation: of a contract with Sebesta, Inc., 5300 Memorial Drive, Suite 390, Houston, Texas 77007, for the purchase of commissioning agent services in a sum not exceeding $170,463.

Rationale: At the October 1, 2015 meeting, the Board of Trustees approved Sebesta, Inc. to provide commissioning agent services for projects at LSC-CyFair and LSC-University Park through a formal Request for Qualifications process in compliance with Texas Government Code 2254.004.

This contract provides for the design phase services. Construction phase services will be brought back to the Board of Trustees for approval at a future meeting.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 23 (ACTION ITEM 26) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the Program Management Firm for Additional Services Related to the Projects Under the 2014 General Obligation Bond Construction Program

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to execute Recommendation: a contract amendment with Jones Lang LaSalle (“JLL”), 1400 Post Oak Blvd., Suite 1100, Houston Texas 77056, in the sum of $209,333 for the purchase of additional program management services. This amendment would bring the new grand total of the contract to $4,157,386.

Rationale: At the February 5, 2015 meeting, the Board of Trustees approved JLL to provide program management services for projects under the 2014 General Obligation Bond Construction Program through a formal Request for Qualifications process in compliance with Texas Government Code §44.031.

JLL was approved to provide these services and was subsequently awarded a contract. Lone Star College now requires additional program management services for the East Aldine Satellite Center, which were not included in the original contract. This amendment provides for these additional services.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832 - 813 -6737

Financial Report and Consideration No. 24 (ACTION ITEM 27) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute the Guaranteed Maximum Price (“GMP”) Contract with the LSC-University Park Construction Manager at Risk (“CMAR”) Firm for Construction Services Related to the Building 12 and 13 Entrance Canopy and Parking Project

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to Recommendation: negotiate and execute the GMP contract with the LSC-University Park CMAR firm, E.E. Reed Construction, L.P., 333 Commerce Green Blvd., Sugar Land, Texas, for construction services related to the Building 12 and 13 Entrance Canopy and Parking Project in a sum not-to-exceed $1,816,108.

Rationale: At the June 4, 2015 meeting, the Board of Trustees approved E.E. Reed Construction, L.P. to provide CMAR services for the construction of projects at LSC-University Park through a formal Request for Qualifications process in compliance with Texas Government Code §2269.251.

E.E. Reed Construction, L.P. solicited proposals from subcontractors for construction services related to this project based on the drawings prepared by the approved project architect, Kirksey Architects, Inc. Bids were provided to E.E. Reed Construction, L.P. from subcontractors and the GMP contracts were prepared.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, 2015A.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 25 (ACTION ITEM 28) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Easements and Agreements Related to the 2014 General Obligation Bond Construction Program at LSC-North Harris

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to execute Recommendation: easements and agreements related to the 2014 General Obligation Bond Construction Program at LSC-North Harris.

Rationale: Centerpoint Energy requires a temporary easement in order to provide and install equipment associated with the relocation of the electrical service to the campus. This is a temporary easement which will be replaced with a permanent easement once the equipment is installed.

Fiscal Impact: No costs are associated with granting this temporary easement to Centerpoint Energy.

Staff Resource: Jimmy Martin 281-290-2608

Financial Report and Consideration No. 26 (ACTION ITEM 29) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Construction Contract for Building Core Improvements at LSC-University Park Building 10, Level 5

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to Recommendation: negotiate and execute a Job Order Contract with Horizon International Group, LLC, 4204 Bellaire Blvd. Suite 210, Houston, Texas 77025, for building core improvements at LSC-University Park Building 10, Level 5 in an amount not-to-exceed $200,000.

Rationale: Approval is requested for the cooperative purchase of construction services for building core improvements for Building 10, Floor 5.

This purchase is in compliance with the provision of Texas Education Code §44.031 (a, 4), which allows the use of interlocal contracts. This purchase will be made through the Choice Partners National Purchasing Cooperative (a division of Harris County Department of Education), contract #15- 041JN-08. A market analysis was performed to ensure the purchase represents the best value for the College.

Fiscal Impact: Funds for this purchase are included in the FY 2016-17 auxiliary budget.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 27 (ACTION ITEM 30) Board Meeting 8-4-16

Request: Consideration of Approval to Authorize the Chancellor or Designee to Extend the Fire Academy Facility Use Agreement

Chancellor’s That the Board of Trustees authorize the Chancellor or designee to Recommendation: execute an amendment to extend the Fire Academy facility use agreement with The Woodlands Township, 2801 Technology Forest Blvd., The Woodlands, Texas 77381, for two additional years for a sum not exceeding $110,000

Rationale: At the September 4, 2008 meeting, the Board of Trustees approved a contract between LSC-Montgomery and The Woodlands Fire Department, now known as The Woodlands Township, for use of the Fire Department’s 20,000 square foot training facility at a cost of $42,000 per year for a term of two years. The contract was subsequently amended for additional terms of two years in 2010, 2012 and 2014.

The agreement enables LSC–Montgomery to offer programs that are greatly needed in Montgomery County and to offer them in a cost- effective manner. Without such a partnership, the cost of building and maintaining a fire science and emergency personnel training facility would be prohibitive.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2016-17 budget. Funds for subsequent fiscal years will be included in future proposed budgets.

Staff Resource: Rebecca Riley 936-273-7222 Carin Hutchins 832-813-6737

Financial Report and Consideration No. 28 (ACTION ITEM 31) Board Meeting 8-4-16

Request: Consideration and Approval to Review and Ratify an Agreement for the Economic Development of Harris County and the Chancellor’s Execution of the Agreement

Chancellor’s That the Board of Trustees review and ratify the Economic Development Recommendation: Funding Agreement with Harris County for an in-kind sum not exceeding $125,000 and the Chancellor’s execution of the agreement.

Rationale: Lone Star College (“College”) has participated in this Economic Development Program for several years. The College is awarded $125,000 if it will match the amount in-kind. The College provides this match of funding through services, equipment, and rentals.

Under Section I.G.1.04 of the College Policy Manual, the Chancellor has limited authority to take emergency action that is normally within the authority of the Board. Such authority is limited to occurrences that require urgent or immediate action including when such action is reasonably necessary to protect substantial personal or real property of the System. Harris County required an expedited execution of the Economic Development Funding Agreement which would have risked $125,000 in funding from Harris County to the College if the deadline had not been met.

Fiscal Impact: Funds for this agreement are included in the approved FY 2015-16 budgets.

Staff Resource: Amos McDonald 832-813-6621

Financial Report and Consideration No. 29 (ACTION ITEM 32) Board Meeting 8-4-16

Request: Consideration of Approval of Resolution Ratifying and Confirming the Terms and Provisions Relating to the Issuance of Lone Star College’s Revenue Financing System Refunding Bonds, Series 2016, Maintenance Tax Refunding Bonds, Series 2016, and Limited Tax General Obligation Refunding Bonds, Series 2016; Ratifying and Confirming the Defeasance of Certain Outstanding Bonds of the College; and Containing Other Matters Relating Thereto

Chancellor’s That the Board of Trustees adopt the resolution, which affirms the pricing Recommendation: certificates for the three 2016 series of refunding bonds, the net present value debt service savings achieved by these series of refunding bonds, and the defeasance of certain outstanding bonds.

Rationale: This resolution reaffirms the Board’s approval of these actions. It has been several months since the Board’s initial resolutions approving these series of refunding bonds and the transactions have now been completed.

Fiscal Impact: This resolution has no fiscal impact not already approved by other Board resolutions; however, it reaffirms the Board’s approval of a course of action that saves the College approximately $81 million over the life of the College’s debt service.

Staff Resource: Mario Castillo 832-813-6655 Carin Hutchins 832-813-6737

Personnel Report and Consideration No. 1 (ACTION ITEM 33) Board Meeting 8-4-16

Request: Consideration of Ratification of Appointments.

Chancellor’s That the contractual appointments listed on the following pages be Recommendation: ratified for the positions indicated.

Rationale: These contractual appointments include ratification of Administrators and Faculty.

Fiscal Impact: Positions and salaries have been budgeted for 2015-2016.

Staff Resource: Link Alander 832-813-6832

a. LSC-CyFair LaGaryion Reed, Assistant Professor, Nursing LVN Effective: 12 month contracted employee at a salary of $67,640 beginning June 6, 2016

Education: M.S., Nursing, Loyola University New Orleans; B.S., Nursing, B.S., Chemistry, Grambling State University

Experience: Adjunct Faculty, Vocational Nursing Program, Lone Star College-CyFair; PRN Medical/Surgical Registered Nurse, Elite Medical Staffing; Staff Registered Nurse, PRN Registered Nurse, Houston Methodist West, Imaging Center; Staff Registered Nurse, Memorial Hermann Northwest, Progressive Care Unit; Staff Registered Nurse, Interventional/Neuro- Interventional Radiology, Surgery/Trauma Unit, LSU Health-Shreveport b. LSC-System Office Brian Cokes, Project Director, Facilities Effective: 12 month contracted employee at a salary of $75,000 beginning June 1, 2016

Education: M.S., Community Development, B.S., Architecture, Prairie View A&M University

Experience: Adjunct Instructor, Lone Star College-North Harris; Architectural Project Manager, Construction Consultant; Sr. Project Manager, CBRE; Sr. Manager, AT&T; Construction Advisor/Department of Housing, Con-Real, Inc.

Samad Hinton, Executive Director, College Preparation Programs Effective: 12 month contracted employee at a salary of $84,502 beginning June 1, 2016

Education: B.S., Accounting, Florida A&M University

Experience: Associate Director of Course and Program Design, Director of Online Business Education, Portland State University; Operations Manager, Partner Integration Services, Team Lead, Enrollment Services, Academic Partnerships, LLC Enrollment Advisor, Walden University

Cyndie McNamee, Executive Director, HR College Services Effective: 12 month contracted employee at a salary of $105,143 beginning June 15, 2016

Education: M.B.A., Our Lady of the Lake University; B.B.A., University of Houston- Clear Lake Experience: Interim Executive Director, HR College Services, Lone Star College- System Office; Sr. Human Resources Manager, Lone Star College-CyFair; Human Resource Manager, Oiltools Inc.; Human Resource Manager, ADESA-Charlotte, Inc.

Caroline Williamson, Executive Director, Workforce Project Development Effective: 12 month contracted employee at a salary of $86,192 beginning June 1, 2016

Education: Bachelor of Commerce, Public Relations, Curtin University, Australia; Advanced Diploma in Business Administration, Central TAFE, Australia

Experience: Implementation Coordinator/Director-SDF Grant, Lone Star Corporate College; Marketing Manager-Catalogs, Hagemeyer North America; Marketing Manager, Encon Safety Products; Communications Coordinator, Central TAFE, Australia c. LSC-Tomball Nicole Brown, Assistant Professor, Veterinary Technology Effective: 12 month contracted employee at a salary of $82,674 beginning May 16, 2016

Education: Doctor of Veterinary Medicine, Oklahoma State University; B.S., Biomedical Science & Animal Science, Texas A&M University

Experience: Relief Veterinarian, RSVP: Relief Services for Veterinary Practitioners; Associate Veterinarian, Companion Animal and Exotic Animal Practice, Best Friends Veterinary Hospital; Associate Veterinarian, Mixed Practice, Conroe Veterinary Clinic; Overnight and Holiday Emergency Veterinarian, Animal Emergency Clinic of Conroe; Veterinary Student; Banfield The Pet Hospital

Emile Dally, Dean, Student Success Effective: 12 month contracted employee at a salary of $86,192 beginning May 1, 2016

Education: M.S., Biology, Texas A&M University; B.S., Biology, Psychology, Dallas Baptist University; A.A.S., Cedar Valley College

Experience: Interim Dean of Student Development, Director, Advising & Counseling, Assistant Director, Advising, Senior Academic Advisor, Academic Advisor II, Academic Advisor, Lone Star College-Tomball; Department Assistant, Assistant Athletic Coach, Adjunct Faculty, Biology Lab Instructor, Cedar Valley College Personnel Report and Consideration No. 2 (ACTION ITEM 34) Board Meeting 8-4-2016

Request: Consideration of Resignations

Chancellor’s That the resignations listed below be accepted and acknowledged. Recommendation:

LSC-System Office Cory Bradfield, Sr. IT Manager, Infrastructure Effective June 24, 2016

Austin Lane, Executive Vice Chancellor Effective June 7, 2016

Salvatore Mira, Director, Small Business Development Center (SBDC) Effective January 15, 2017

Heidi Smith, Executive Director, First Year Experience (FYE) Effective July 1, 2016

Wendell Williams, Associate Vice Chancellor, Student Success Effective June 11, 2016

LSC-Kingwood Shelley Caraway, Associate Professor-Speech Effective June 1, 2016

Staff Resource: Link Alander 832-813-6832

Personnel Report and Consideration No. 3 (ACTION ITEM 35) Board Meeting 8-4-16

Request: Proposed Addenda to the Chancellor’s Contract

Recommendation: Acceptance of any proposed addenda to the Chancellor’s contract.

Special Report and Consideration No. 1 (ACTION ITEM 36) Board Meeting 8-4-16

Request: Consideration of Approval for the Board of Trustees to Submit Nominations to Association of Community College Trustees (ACCT) for ACCT Board Committees

Chancellor’s That the Board of Trustees approve submitting nominations for ACCT Recommendation: Board Committees.

Rationale: The Association of Community College Trustees (ACCT) has five committees: Diversity; Finance and Audit; Governance and Bylaws; Member Communications and Education; and Public Policy and Advocacy.

Associate members may be appointed to a committee under the following conditions: they shall be selected from voting members; they may serve three consecutive one-year terms per committee; no more than one associate member from a college shall serve on any one board committee; all related expenses are to be the responsibility of their college; they have full voting rights; and they shall have a letter of nomination from their board supporting the appointment to an ACCT committee.

As one of the largest community colleges in the country, LSC trustees would serve as effective committee members to advance the ACCT mission.

Fiscal Impact: Approximately $2,000

Staff Resource: Helen Clougherty 832-813-6514

Building and Grounds Report Board Meeting 8-4-16

Report: Construction Projects Update

The monthly construction projects update is presented for Board review.

CONSTRUCTION PROJECTS UPDATE August 4, 2016

2014 General Obligation Bond Projects Summary

LSC-CyFair • Instruction and Student Life Building: Building slab and second floor have been placed and structural steel erection is complete. Masonry walls on Central Plant are complete. Construction continues on schedule and is expected to be complete in March 2017. • Cypress Center Workforce Expansion: Construction is scheduled to begin in November 2016 simultaneous with the Westway Park Technology Center and be complete in May 2017. • Westway Park Technology Center: Construction documents are in progress. It is anticipated that the GMP will be presented for consideration of approval at the November 2016 Board of Trustees meeting. Construction is expected to be complete in July 2017.

LSC-Kingwood • Student Services Center Expansion: Earthwork and building pad construction are in progress. • Process Technology Center: The GMP was approved at the June 2016 Board of Trustees meeting and the contract is being finalized.

LSC-Montgomery • Conroe Satellite Center: Building foundation is complete and exterior walls are in progress. Construction is expected to be complete in January 2017. • Live Entertainment Technology Building: The GMP was approved at the June 2016 Board of Trustees meeting and the Contractor has mobilized. Construction is expected to be complete in March 2017. • Magnolia Satellite Center: Site alternatives continue to be evaluated.

LSC-North Harris • Applied Technology Workforce Building: The GMP was approved at the June 2016 Board of Trustees meeting. Construction is expected to be complete in July 2017. • East Aldine Satellite Center: The Aldine ISD Early College Facility Design Development documents are in progress and it is anticipated that the GMP will be presented for consideration of approval at the November 2016 Board of Trustees meeting. Construction of both projects is expected to be complete in November 2017. • Transportation and Logistics Institute: Site purchase alternatives continue to be evaluated. • Relocate Electrical Service Underground: Design Development is in progress and it is anticipated that the GMP will be presented for approval at the November 2016 Board of Trustees meeting. Construction is expected to be complete in March 2017.

LSC-Tomball • Health Science Building - 3rd Floor Buildout: Construction is progressing on schedule and is expected to be complete in August 2016. LSC-University Park • Science and Innovation Center: Building slab is nearing completion. Construction is expected to be complete in May 2017. • Classroom Renovations in Building 12, Level 7: Construction is progressing on schedule and is expected to be complete in August 2016.