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Adopted Minutes
December 10, 2001
Regular Meeting

Call to Order

The meeting was called to order at 5:04 p.m.

Roll Call

Present: Canady, Heywood, Holden, Jeffries, Patterson, Pelleran, Rasmusson
Absent: None.

Additions/Deletions to the Agenda

There were no additions or deletions to the agenda.

Limited Public Comment Regarding Agenda Items

There were no comments from the public.

Chairperson and Board Member Reports

Chairperson

Appointment of M-TEC/Bond Committee - Chairperson Jeffries stated that there are two purposes for the M-TEC and Bond committee. One purpose is to work with staff to develop site recommendations for the M-TEC. The second purpose is to work preliminarily, on a short-term basis, on bond rates, amounts, and timeframes and develop recommendations to the Board.

Chairperson Jeffries appointed Trustees Patterson, Pelleran and himself to the M-TEC and Bond committee.

Board Member

Trustee David Patterson ? Association of Community College Trustees - Trustee Patterson stated that he received a letter regarding his appointment to the Member Communications Committee of the Association of Community College Trustees. He distributed the letter to the members of the Board (the letter is on file with the official Board materials.) He thanked the Board for their support.

Trustee KP Pelleran - Star Institute Recruitment Effort - Trustee Pelleran reported on the STAR Institute recruitment effort. She complimented Toni Glascoe and her staff on the excellent work in recruiting high school students for the Star Institute. She said that they have a real strong recruitment effort in reaching out to the high schools in the Lansing area. The outlying areas are also participating in the Star Institute.

Trustee Pelleran stated she attended the Women?s Chorus on Sunday, December 9 and thought it was a tremendous program. She encouraged everyone to attend next year. Trustee Pelleran complimented the staff and students for their outstanding performance.

Trustee Olga Holden ? Foundation Board - Trustee Holden reported that the Foundation Board has embarked upon a strategic planning process. The Foundation has selected Ms. Sue Stratton as their strategic planning consultant. Trustee Holden said that there was a work session regarding what is the relationship with the College as a whole and in relation to this Board. She said that the process would involve the Lansing Community College Board of Trustees participating in focus groups.

President Cunningham reported that the Foundation Board has a timeline of March or April in having the plan up and running.

Trustee Pelleran complimented the Foundation Board for a wonderful Holiday Open House.

President Cunningham reported that $5,000 was reimbursed to the Foundation from the excess funds from the millage campaign.

President's Report

Informational

Human Resources

Appointments?

Faculty?

Jeffrey Huber, Faculty Member, Fire Science, Human Health and Public Services Division

Resignations?

Administrative-

Robert Bentley, Dean, Student and Academic Support Division

Dr. Thomas L. Franke, Dean, Information Technology and Research

M-TEC

President Cunningham reported that hopefully there would be a decision made regarding the M-TEC site by the end of this year.

Action Items

Approval of Minutes - November 14, 2001 Special Meeting and November 19, 2001 Regular Meeting

There were no changes to the minutes.

Finance

Bond Presentation and Resolution - President Cunningham stated that the resolution before the Board would allow the College to move forward with the exploration of selling of bonds.

Vice President Barbara Larson stated that with the passage of the millage the College has the opportunity to move forward with the Facilities Master Plan. The College has bond capacity of over $74 million based on the formula from the Michigan Community College Act. She introduced Mr. Paul Stauder from Stauder, Bauch & Associates, Inc. Vice President Larson stated that Mr. Stauder prepared two scenarios. The first scenario is a 15-year payment schedule and the second scenario is a 20-year payment schedule both assuming a 5-? % interest rate. The repayment schedule is connected with what the College can afford. Vice President Larson introduced Mr. William Danhof, from Miller, Canfield, Paddock and Stone, who drafted the resolution before the Board.

Mr. Stauder gave the bond presentation and timeline to the Board. (The presentation is on file with the official Board materials.) He distributed a document, which is a transaction his company completed for Jackson Community College. (The document is on file with the official Board materials.)

Chairperson Jeffries asked if the sale with Jackson Community College was a negotiated sale.

Mr. Stauder responded that it was a competitive sale. It was an 11-year amortization period on the bonds and the interest rate was 4.36%. He estimated that 20-year financing to be about 5% and 15-year financing would approximately be 4.7%.

Mr. William Danhof stated that the Board has a resolution in their packet, which authorizes the parameters of the issuance of these bonds. It is necessary that the resolution be passed and a formal resolution authorizing the actual sale of the bond will be brought back for the Board's approval. The resolution will start the selection process of an underwriter and various parameters are also being worked on. He said that the bonds are the first budget obligation of the College as provided by State law.

Trustee Patterson asked Mr. Danhof if the resolution triggers the pricing and the sale of the bonds.

Mr. Danhof responded no and they will come back to the Board for the sale. But essentially it will trigger the pricing of bonds, such that the committee will come back with a final price and the final interest rate.

Trustee Patterson asked if this would be completed before the first of February.

Mr. Danhof responded it is scheduled to come back to the Board at the February meeting. It is scheduled to be completed by February 5, 2002.

Mr. Stauder stated that they would probably come back to the Board with a recommendation at the January meeting because it would be closer to the point where the bonds would be priced and a much better handle on any changes in the marketplace that might impact this authorization. It is expected that administration set more defined parameters by mid-January. The resolution allows the College to approach the State to get through the treasury approval process, which can take several weeks and prepare other components of the transaction.

President Cunningham stated that the two scenarios, which are included as informational purposes, are very close to mirroring what was communicated during the millage campaign.

Trustee Holden asked if furnishings are considered capital improvement.

Vice President Larson responded yes. The numbers that were presented to the Board in terms of the 51.5 million dollars included a projection of 20% for furniture and equipment.

Trustee Holden asked when would the State be deciding on the College's request for matching funds for phase one.

Vice President Larson responded that generally the capital outlay bills are drafted in June, but sometimes the State will make decisions on the capital outlay by the December holiday.

Trustee Holden asked if the College should decide to bond for the full amount it is allowed and the State grants the request, what will the College do with the money.

President Cunningham responded that phase three would probably be implemented earlier.

IT WAS MOVED by Trustee Canady and supported by Trustee Patterson to approve the President's Report as presented.

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

Motion carried.

Closed Session

IT WAS MOVED by Trustee Patterson and supported by Trustee Holden to go into closed session for the purpose of discussing a labor issue.

Roll call vote:
Ayes: Pelleran, Rasmusson, Canady, Heywood, Holden, Jeffries, Patterson
Nays: None
Absent: None

Motion carried.

The Board went into closed session at 5:37 p.m.

The Board returned to open session at 6:28 p.m.

Public Comment

There were no comments from the public.

Adjournment

The meeting was adjourned at 6:28

p.m.

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Phone: (517) 483-5252
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