Mott Community College Board of Trustees

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Mott Community College Board of Trustees Regular Meeting Monday, August 18, 2014 Room 1301 Regional Technology Center AGENDA The mission of Mott Community College is to provide high quality,

1 Mott Community College Board of Trustees Regular Meeting Monday, August 18, 2014 Room 1301 Regional Technology Center AGENDA The mission of Mott Community College is to provide high quality, accessible, and affordable educational opportunities and services that cultivate student success and individual development and improve the overall quality of life in a multicultural community.

2 218 I. CALL TO ORDER Board of Trustees Charles Stewart Mott Community College Regular Meeting, August 18, 2014 Volume 45 AGENDA II. III. IV. ADDITIONS TO THE AGENDA ADOPTION OF THE AGENDA SPECIAL PRESENTATIONS V. COMMUNICATIONS VI. VII. COMMENTS FROM THE PUBLIC APPROVAL OF MINUTES Approval of Regular Meeting Minutes of June 18, i VIII. INFORMATIONAL REPORTS Acceptance of Standing Board Committee Reports: 1. Personnel (Joseph, Norwood, Turner) 2. Finance/Audit (Koegel, Freeman, Snell) IX. UNFINISHED BUSINESS X. NEW BUSINESS Consent Agenda: 1.46 Treasurer s Report for July Individual Items: 1.47 FABLAB Purchase Award Physical Plant Operations Custodial Supply Contract Purchase Award Approval of Faculty Collective Bargaining Agreement XI. ADMINISTRATIVE ITEMS President s Report 231 XII. MISCELLANEOUS BUSINESS Comments from Board Members XIII. EXECUTIVE SESSION ADJOURNMENT

3 219 FOR ACTION 1.46 Treasurer s Report for July 2014 This resolution is recommended. Be it Resolved, That Board of Trustees Charles Stewart Mott Community College Regular Meeting, August 18, 2014 Volume 45 The Charles Stewart Mott Community College Board of Trustees Accepts the financial report of the College for the month of July 2014 as presented by the Administration. Reviewed and Submitted By: Date: August 18, 2014 Lawrence A. Gawthrop Chief Financial Officer Board Policy Statement Reference: 3100 Budget Adoption General: The annual budget represents the programmatic direction and vision of the College. It is also designed to meet both the legal requirements and needs of the College.

4 220 Summary of Expenditures: July Treasurer s Report Larry Gawthrop, CPA Chief Financial Officer August 18, 2014 Month of July Spending: General Fund: $ 3,933,547 All Other Funds: $ 2,480,524 Total: $ 6,414,071 Comments on General Fund Financial Statements: Statement of Revenues, Expenditures and Changes in Net Assets In summary, total revenues for the one month ended July 31, was approximately $11.5 million, representing 15.2% of the annual budget. This is.9% lower than last year at this time, when we had recognized 16.1% of budgeted revenues. The most significant changes are in the Tuition and fees, Property taxes, and Grants and other which are discussed further below. Expenditures for the one month ended were $3.1 million dollars, which represents 4.1% of the annual budget, 1.1% lower than it was one year ago. Revenues Tuition and fees revenues are $11.0 million which is $171 thousand less than last year. The fall enrollment is less than budgeted. We will be monitoring enrollment as it progresses for potential negative budget impact. Property taxes collected are $300 thousand. The amount budgeted is $17.3 million, the same as it was in the fiscal year and is based on final taxable value figures provided by the Genesee County Equalization Department. State appropriations payments for FY are paid in monthly installments starting with October. The total budgeted amount for the current fiscal year is $15.7 million or roughly $400 thousand (2.7%) more than last year excluding the UAAL stabilization pass-through.

5 221 Expenditures Salaries and Wages are at $1.6 million, or 3.9% of the annual budget,.5% lower than it was one year ago, mainly due to less summer classes and related wages. Fringe Benefits are at $627 thousand, or 3.6% of the budgeted amount and 1.3% lower when compared to the previous year. This decrease is due in part to the lower summer enrollment and a timing difference in the MPSERS accrual. Other Expenditures The changes in the Other Expenses area for July are due in large part to timing differences of invoices from receipt and vouchering of invoices from last year and are line with the past trends after factoring in timing differences on payment of bills. Balance Sheet Total Assets are at approximately $19.4 million, down $187 thousand from last July. The largest differences are a $118 thousand decrease in Cash and Cash Equivalents, a $535 thousand increase in Due from other funds and a $1.0 million decrease in Accounts receivable. The Accounts receivable decrease is due in part to lower enrollment and efforts made to more closely monitor and update the student A/R records more timely. Due to/due from Other Funds The College maintains one checking account for all of its funds; deposits and disbursements. This necessitates the short-term loaning or borrowing between the funds throughout the year depending on which funds revenue or expenditures are being deposited or paid out. Each month the accounting department clears these due to s and due from s respectively assigning the activity to the proper fund. However, significant activity can occur after these transfers are completed, causing large variances when compared to the previous period. At roughly $5 million, Total Liabilities are statistically the same as the prior year. The most significant changes were decreases in Accounts payable and Other accrued liabilities and an increase in Accrued payroll and related liabilities. These were the effects of timing differences in payments from the prior year. Comments on spending from other funds: Of the $2.5 million expended in the other funds, $151 thousand was expended out of the Maintenance and Replacement Funds for maintenance and improvements, $2.5 thousand from the Bond funds, and the remaining $2.6 million out of the Agency, Scholarships, and Federal Grants, for grant activities and student scholarships.

6 222 Mott Community College General Fund Statement of Revenues, Expenditures and Changes in Net Assets - Modified Accrual For the 1 Months Ended July 31, 2014 With Comparative Totals at July 31, 2013 Revenues: FY Budget YTD Actuals as of 07/31/14 YTD Actuals as of 07/31/13 Actual to Actual $ Change Actual to Actual % Change Tuition and fees $ 38,177,492 $ 11,018,466 $ 11,190,153 $ (171,687) -1.53% Property taxes 17,338, , ,547 (216,727) % State appropriations 15,736, % Ballenger trust 1,815, , , % Grants and other 2,362,191 26, ,780 (184,410) % Total revenues 75,430,356 11,494,803 12,067,627 (572,824) -4.75% Expenditures: Salaries and wages 40,310,719 1,578,027 1,740, , % Fringe benefits 17,608, , , , % Contracted services 5,131, , ,736 (40,780) % Materials and supplies 2,126,599 70,802 11,215 (59,587) % Facilities rent 205,400 26,988 26, % Utilities and insurance 2,938, , , , % Operations/communications 5,284, , , , % Transfers out 1,453, % Equipment and Improvements 366,500-2,661 2, % Total expenditures 75,424,741 3,123,257 3,879, , % Net increase/(decrease) in net assets 5,615 8,371,546 8,188, , %

7 223 Mott Community College General Fund Balance Sheet - Modified Accrual July 31, 2014 With Comparative Totals at July 31, 2013 As of As of July 31 July 31 $ Change Assets Current Assets Cash and cash equivalents $ 6,409,403 $ 6,528,355 $ (118,952) Due from other funds 2,007,287 1,472, ,555 State appropriation receivable 1,521,543 1,353, ,869 Accounts receivable - net of allowance for uncollectible accounts ($3,777,951 for 2015 and $5,423,636 for 2014) 8,887,501 9,900,064 (1,012,563) Inventories 48,024 44,069 3,955 Prepaid expenses and other assets 540, , ,560 Total Assets $ 19,414,524 $ 19,601,100 $ (186,576) Liabilities and Net Assets Current Liabilities Accounts payable $ 407,095 $ 470,126 $ (63,031) Accrued payroll and related liabilities 1,899,164 1,472, ,278 Deposits held for others 14,526 2,137 12,389 Other accrued liabilities 151, ,536 (389,079) Total Current Liabilities 2,472,242 2,485,685 (13,443) Accrued termination pay 2,522,328 2,531,085 (8,757) Total Liabilities 4,994,570 5,016,770 (22,200) Net Assets Unrestricted 14,419,954 14,584,330 (164,376) Total Net Assets 14,419,954 14,584,330 (164,376) Total Liabilities and Net Assets $ 19,414,524 $ 19,601,100 $ (186,576)

8 224 FOR ACTION Board of Trustees Charles Stewart Mott Community College Regular Meeting, June 18, 2014 Volume FABLAB Purchase Award Mott Community College (MCC) will be purchasing one (1) Stratasys Fortus 400mc 3D Production System for the FABLAB with TAACCCT MCAM (RTC): Equipment/Remodeling grant funds. This purchase compliments MCC s existing rapid prototyping units and provides larger build sizes and build materials to produce functional prototypes. The Purchasing Department will be purchasing one (1) Fortus 400mc 3D Production System from Advanced Technology Consultants, the exclusive reseller of Stratasys for the State of Michigan. Based on the above information, the following resolution is recommended. Be it Resolved, That The Charles Stewart Mott Community College Board of Trustees Awards the purchase of one (1) Stratasys Fortus 400mc 3D Production System to Advanced Technologies Consultants (ATC), 110 W. Main Street, PO Box 905, Northville, MI 48167, for a cost in the amount of $125, [One hundred twenty-five thousand eight hundred fifteen dollars and zero cents]. Reviewed and Submitted by: Date: June 11, 2014 Thomas Crampton Executive Dean, Regional Technology Initiatives Board Policy Statement Reference: 4410 Purchasing General: Purchases should be based on quality and price. Qualified vendors should have the opportunity to bid on College purchases. This policy is established to ensure that sound business practices are followed in the purchase of furnishings, equipment, materials, goods and supplies.

9 225 FABLAB Purchase Award Sole Source VENDOR ATC 110 W. Main Street, PO BOX 905 Northville, MI BID Fortus 400mc 3D Production System ($125, each) JUSTIFICATION Stratasys is the sole proprietor of the design and technology of the Fortus 3D Production Systems. This product is sold and serviced only by authorized Resellers. ATC is the sole Educational Reseller of the Fortus 3D Production System for all of Michigan. No other company has been authorized to sell, maintain, service or supply parts for the Fortus 3D Production System other than ATC. All parts for repair or service can only be obtained from Stratasys via ATC. A competitive sealed bid was performed in which no bids were received.

10 226 FOR ACTION Board of Trustees Charles Stewart Mott Community College Regular Meeting, August 18, 2014 Volume Physical Plant Operations, Custodial Supply Contract Purchase Award Mott Community College (MCC) will be purchasing various cleaning supplies for Physical Plant Operations Custodial Department via multi-year contract. The contract for these services will last three (3) years with two (2) optional one (1) year extensions, exercisable at the sole discretion of MCC. Following a competitive sealed proposal in which twelve (12) responses were received and evaluated, custodial supplies will be purchased from the following vendors: Staples Advantage (Paper Products and Health/Miscellaneous Cleaning Tools); Arnold Sales (Floorpads & Finishes and Cleaning Chemicals); and OfficeMax (Trash Liners). The award was split by category to help take advantage of the best pricing while limiting the number of vendors to manage under contractual award. Based on the above information, the following resolution is recommended. Be it Resolved, That The Charles Stewart Mott Community College Board of Trustees Awards the purchase for Custodial Supplies Paper Products and Health/Miscellaneous Cleaning Tools to Staples Advantage of Northwestern Highway, Southfield, Michigan, for an estimated annual cost in the amount of $73, [Seventy-three thousand, five hundred seventy-nine dollars]; Awards the purchase for Custodial Supplies Floorpads & Finishes and Cleaning Chemicals to Arnold Sales of 1218 North Lincoln Street, Bay City, Michigan, for an estimated annual cost in the amount of $50, [Fifty thousand nine hundred thirteen dollars]; and Awards the purchase for Custodial Supplies Trash Liners to OfficeMax of Stephens Road, Warren, Michigan, for an estimated annual cost in the amount of $24,380 [Twenty-four thousand three hundred eighty dollars]. Reviewed and Submitted by: Date: August 18, 2014 Scott J. Jenkins Vice President, Student & Administrative Services Board Policy Statement Reference: 4410 Purchasing General: Purchases should be based on quality and price. Qualified vendors should have the opportunity to bid on College purchases. This policy is established to ensure that sound business practices are followed in the purchase of furnishings, equipment, materials, goods and supplies.

11 227 Custodial Supplies Multiyear Contract Purchase Award Bid Tabulation Vendor Name & Address Bid Paper Products and Health/Miscellaneous Cleaning Tools (annual cost shown) Bid Floorpads & Finishes and Cleaning Chemicals (annual cost shown) Bid Trash Liners (annual cost shown) Staples Advantage Northwestern Hwy Southfield, MI Arnold Sales 1218 N Lincoln Street Bay City, MI OfficeMax Stephens Rd Warren, MI KSS Enterprise Five Mile Rd Plymouth, MI Empire Equipment Omira St Detriot, MI Colman Wolf 719 Griswold St Detroit, MI Flint Cleaning Supplies 3202 E Court St Flint, MI Fastenal 3417 Lapeer Rd Flint, MI Nichols 1391 Judson Rd Norton Shores, MI SupplyPro 7075 Dort Hwy Grand Blanc, MI All American Poly 40 Turner Place Piscataway, NJ Interboro Packaging 114 Bracken Rd Montgomery, NY $73,579 $33,519 1 $25,436 1 $81,771 $50,913 $30,859 $81,482 $64,208 $24,380 $57,295 2 $58,078 $31,289 2 $74,563 $28,640 3 $24,026 3 $88,854 $51,738 $41,104 $92,158 $32,438 4 $35,144 $108,956 $1,089 5 $ 58,740 $44,453 6 No Bid No Bid No Bid $11,521 7 $30,254 No Bid No Bid $21,794 8 No Bid No Bid $19,402 9

12 1Staples Advantage Liners: bid some high density liners instead of required low density liners. Finishes: trial products did not clean better than current products. Cleaning Chemicals: main cleaning product is not peroxide based. 2KSS Enterprises Paper Products: includes only 3 of 4 products bid (no price on toilet tissue). Health/Miscellaneous Cleaning Tools: requires changing out all hand sanitizer dispensers. 3Empire Equipment Finishes: low confidence following interview; minimum order per location must be $300; $9.50 per order applied for each order under minimum. 4Flint Cleaning Supplies Finishes: trial products did not clean better than current products. Cleaning Chemicals: main cleaning product is not peroxide based. 5Fastenal quoted only Floorpads and not Floor Finishes; did not quote Cleaning Chemicals. 6Nichols price listed is only for Paper Products (+$2, over Staples Paper Products pricing); did not quote Health/Miscellaneous Cleaning Tools. 7SupplyPro Floorpads & Finishes: bid only 13 of 21 products in the category; did not quote Cleaning Chemicals. 8All American Poly Liners: new company, did not submit references; did not bid multi-location delivery as required. 9Interboro Packaging Liners: did not bid multi-location delivery as required. 228

13 229 FOR ACTION Board of Trustees Charles Stewart Mott Community College Regular Meeting, August 18, 2014 Volume Approval of Faculty Collective Bargaining Agreement Representatives of the College and the Mott Community College Education Association (the faculty bargaining unit) have reached tentative agreement on a collective bargaining agreement (CBA) for the period covering August 24, 2014 through August 23, The tentative agreement has been approved by the Union membership and Management recommends Board approval of the new labor agreement. Many of the negotiated changes involve language improvement and changes to working conditions. As with other recent bargaining, the contract has been edited to ensure compliance with state law with regards to dues deduction and union membership. The dental benefit was improved but the increased cost will be paid by the employees. In addition to language improvement and changes to working conditions, the proposed agreement: 1. Continues current language linking faculty salary adjustments to Exempt pay changes. 2. Minimizes College exposure to additional costs from the Affordable Care Act. 3. Includes collaboratively developed language focused on ensuring high quality e- learning. 4. Contains explicit information about the range of responsibilities for full-time faculty. On the basis of the preceding information, the following resolution is recommended. Be it Resolved, That The Charles Stewart Mott Community College Board of Trustees Approves the new labor agreement for the Mott Community College Education Association through August 23, 2017, as outlined in the tentative agreement reached between College and Union representatives, and further authorizes the President to execute the labor agreement. Reviewed and Submitted by: Date: August 18, 2014 Amberly Brennan Interim Chief Human Resources Officer

14 Board Policy Statement Reference: 5100 Compensation (1). Total compensation/benefits must not exceed 77% of the total operating budget. (2). The President is directed to review all budget proposals and labor agreements with specific emphasis on total compensation and recommend only actions that fall within the 77% maximum and that will preserve the College s long-term fiscal stability. Board Policy Statement Reference: Recognition of Bargaining Units, Board Negotiating Agents, Contract Approval, Contract Administration, Staff Job Action (2). Contract Approval: At the conclusion of contract bargaining, and following member ratification, the President must present the proposed agreement to the Board for its consideration. 230

15 231 President s Report Regular Board of Trustees Meeting August 18, Executive Summary 2. Introduction of New Hires 3. Upcoming Dates: ***** August 25, 2014 August 28, 2014 September 1, 2014 September 17, 2014 September 22, 2014 October 23 26, 2014 October 22, 2014 October 27, 2014 November 19, 2014 November 24, 2014 November 27-28, 2014 December 10, 2014 December 15, 2014 December 24 January 5 Trustee Scholars Reception, 5 p.m., MCC Event Center All-Employee Kick-Off Breakfast, 7:30 a.m., Genesys Conference Center College Closed for Labor Day Finance/Audit 12:00 noon, CM1019 Personnel 4:00 p.m., CM1019 Regular Board Meeting Regional Technology Center 5:45 p.m. dinner; 6:30 p.m. workshop; 7:30 p.m. meeting ACCT Leadership Congress, Chicago, IL Finance/Audit 12:00 noon, CM1019 Personnel 4:00 p.m., CM1019 Regular Board Meeting Regional Technology Center 5:45 p.m. dinner; 6:30 p.m. workshop; 7:30 p.m. meeting Finance/Audit 12:00 noon, CM1019 Personnel 4:00 p.m., CM1019 Regular Board Meeting Regional Technology Center 5:45 p.m. dinner; 6:30 p.m. workshop; 7:30 p.m. meeting College Closed for Thanksgiving Holiday Finance/Audit 12:00 noon, CM1019 Personnel 4:00 p.m., CM1019 Regular Board Meeting Regional Technology Center 5:45 p.m. dinner; 6:30 p.m. workshop; 7:30 p.m. meeting College Closed for Winter Break

Mott Community College Board of Trustees

Mott Community College Board of Trustees Regular Meeting Monday, August 22, 2016 Room 1301 Regional Technology Center AGENDA The mission of Mott Community College is to provide high quality, accessible,