Mott Community College Board of Trustees Regular Meeting. Monday, March 25, 2019 Room 1301 Regional Technology Center

Transcription

1 Mott Community College Board of Trustees Regular Meeting Monday, March 25, 2019 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 39 I. CALL TO ORDER Board of Trustees Charles Stewart Mott Community College Regular Meeting, March 25, 2019 Volume 48 AGENDA II. III. IV. ADDITIONS TO THE AGENDA ADOPTION OF THE AGENDA CELEBRATING EMPLOYEE AND STUDENT SUCCESS V. SPECIAL PRESENTATIONS Recommendation to Amend Board Policy 3930 (Fiscal/Budget Reserves) - Larry Gawthrop, Chief Financial Officer Tuition and Fee Recommendation for Academic Year - Larry Gawthrop, Chief Financial Officer VI. VII. VIII. IX. COMMUNICATIONS COMMENTS FROM THE PUBLIC APPROVAL OF MINUTES Approval of Special Organizational Meeting and Regular Meeting Minutes of 1-1s February 25, 2019 INFORMATIONAL REPORTS Acceptance of Standing Board Committee Reports: 1. Personnel (Joseph, Norwood, Reyes) 2. Finance/Audit (Snell, Everman, Figueroa) Other Reports: 1. Goals & Objectives Committee (Figueroa, Freeman, Norwood) X. UNFINISHED BUSINESS

3 40 XI. NEW BUSINESS Consent Agenda 1.14 Treasurer s Report for February Individual Items 1.15 Firewall Software & Support Maintenance Purchase Award Antivirus Software & Support Maintenance Purchase Award Low Voltage Cabling Installation Service Agreement Purchase Award Architectural & Engineering Services Purchase Award Tuition and Fee Increase Amendments to Board Policy Section 3930 (Fiscal/Budget Reserves) First Reading XII. XIII. XIV. ADMINISTRATIVE ITEMS President s Report 58 MISCELLANEOUS BUSINESS Comments from Board Members EXECUTIVE SESSION ADJOURNMENT

4 41 FOR ACTION 1.14 Treasurer s Report for February 2019 This resolution is recommended. Be it Resolved, That Board of Trustees Charles Stewart Mott Community College Regular Meeting, March 25, 2019 Volume 48 The Charles Stewart Mott Community College Board of Trustees Receives the financial report of the College for the month of February 2019 as presented by the Administration. Reviewed and Submitted by: 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.

5 42 February Treasurer s Report Larry Gawthrop, CPA Chief Financial Officer Summary of Expenditures: March 25, 2019 Month of February Spending: General Fund: $ 5,513,863 All Other Funds: $ 6,371,837 Total: $ 11,885,700 Comments on General Fund Financial Statements: Statement of Revenues, Expenditures and Changes in Net Assets In summary, total revenues for the eight months ended February 28, were approximately $59 million, representing 74.5% of the annual budget, compared to 75% a year ago. The most significant change when compared to the budget and prior year actuals is in Tuition and fees, State of Michigan Retirement and PPT reimbursement, Grants and Other and Transfer from Reserve which are discussed further below. Expenditures for the eight months were roughly $45.5 million, representing 58.2% of the annual budget, compared to $43.6 million and 57.7%, one year ago. Revenues Tuition and fees revenue is $28.0 million, $189 thousand less than last year and down 0.67% from a year ago. Our budget included a 4% decline in enrollment and in contact hours. Our Fall term enrollment was significantly better than what was budgeted and our Winter term was better than what was budgeted, but not as good as Fall. Property taxes collected are $15.3 million. The amount budgeted is $18.8 million, $600 thousand or roughly 3.32% more than the fiscal year budget, and is based on final taxable value figures provided by the Genesee County Equalization Department. State appropriations payments for FY are paid in eleven monthly installments starting in October. The total budgeted amount for the current fiscal year is $16.3 million the same as the year, excluding the UAAL stabilization pass-through and PPT Stabilization. Grants and other revenue increased by $2.2 million compared to the previous year which is a direct result of the Jana B. Robinson Trust receipt, with the offset in the Operations/communications line as an expenditure when the funds were transferred out to the Foundation for MCC. Transfer from reserve account is for the planned transfer from the future funding account.

6 43 Expenditures Salaries and Wages are roughly $21 million, or 57.5% of the annual budget, compared to $20.9 million and 58.1%, a year ago. Fringe Benefits are at $9.4 million, and 58.6% of the budgeted amount compared to $9.2 million and 60.4% of the budget one year ago. Other Expenditures: Contracted services are up roughly $400 thousand from prior year due in large part to custodial contract services and professional fees related to the Robinson trust. The difference in Transfers out is due to timing differences from year to year. Balance Sheet Total Assets are at approximately $24.8 million, down $8.5 million from last February. The largest differences are a $5.8 million increase in Cash and cash equivalents, a $15.3 million decrease in Due from other funds, and a net $1 million increase in Accounts receivable. The increase in Accounts receivable is due to a timing difference in collections from sponsor billings and nonstudent A/R year, and a decrease in the Allowance for Bad Debts due to better collections. Due to/due from Other Funds result from the College maintaining 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. Total Liabilities are down $9.7 million from the prior year. The most significant changes are a $5.7 million decrease in Accounts payable, a $2 million decrease in Other Current Liabilities and a $1.9 million decrease in Accrued payroll and other liabilities mainly due to the 3% ORS refunds issued in the prior year to eligible participants from the lawsuit against the State of Michigan. The increase in Other Current Liabilities represents the reversal of the Title IV audit finding accrued in the prior year. The decrease in Accounts payable is attributable to timing differences in vouchering of invoices and student refund payments. Comments on spending from other funds: Of the roughly $6.4 million expended in the other funds, $458 thousand was out of the Maintenance and Replacement and Bond funds, for capital related improvements, $664 thousand for depreciation and capital asset related activity and the remaining $5.2 million out of the Agency, Scholarships, and Grants Funds, for grant activities and student scholarships.

7 44 Mott Community College General Fund Statement of Revenues, Expenditures and Changes in Net Assets - Modified Accrual For the 8 Months Ended February 28, 2019 With Comparative Totals at February 28, 2018 Revenues: FY Budget YTD Actuals as of 02/28/19 YTD Actuals as of 02/28/18 Actual to Actual $ Change Actual to Actual % Change Tuition and fees $ 31,987,304 $ 27,986,176 $ 28,175,308 $ (189,132) -0.67% Property taxes 18,850,807 15,318,246 15,018, , % State appropriations 16,258,100 7,390,046 7,390,053 (7) 0.00% State appropriations - UAAL Passthrough 3,174,303 1,442,875 2,006,269 (563,394) % State appropriations % Other 313, , , , % State appropriations - PPT Stabilization 600, , ,359 (255,075) % Ballenger trust 2,173,344 1,448,896 1,294, , % Grants and other 4,314,056 3,402,397 1,205,938 2,196, % Transfer from Reserve 1,253,981 1,253, , , % Total revenues 78,925,328 58,824,881 56,144,524 2,680, % Expenditures: Salaries and wages 36,547,719 21,002,460 20,886,500 (115,960) -0.56% Fringe benefits 15,977,686 9,365,954 9,215,400 (150,554) -1.63% Fringe benefits - UAAL Passthrough 3,174,303 1,442,875 2,006, , % Contracted services 7,404,584 3,963,564 3,556,932 (406,632) % Materials and supplies 2,342,731 1,186,290 1,191,862 5, % Facilities rent 401, , ,348 (48,212) % Utilities and insurance 3,021,458 1,785,883 1,859,877 73, % Operations/communications 7,198,547 4,288,641 2,883,294 (1,405,347) % Transfers out 1,984,824 2,187,438 1,787,267 (400,171) 0.00% Equipment and Improvements 138,102 46,055 43,344 (2,711) -6.25% Total expenditures 78,191,710 45,506,720 43,620,093 (1,886,627) -4.33% Net increase/(increase) in net assets 733,618 13,318,161 12,524, , %

8 45 Mott Community College General Fund Balance Sheet - Modified Accrual February 28, 2019 With Comparative Totals at February 28, 2018 As of As of February 28 February 28 $ Change Assets Current Assets Cash and cash equivalents $ 33,543,869 $ 27,678,739 $ 5,865,130 Due from other funds (11,695,422) 3,585,121 (15,280,543) Accounts receivable - net of allowance for uncollectible accounts ($6,025,038 for 2018 and $6,124,879 for 2017) 2,782,339 1,782, ,834 Inventories 55,947 70,705 (14,758) Prepaid expenses and other assets 152, ,329 (114,204) Total Assets $ 24,838,858 $ 33,383,399 $ (8,544,541) Liabilities and Net Assets Current Liabilities Accounts payable $ 236,753 $ 5,951,718 $ (5,714,965) Other current liabillities - 2,008,039 (2,008,039) Accrued payroll and related liabilities 1,190,320 3,161,439 (1,971,119) Deposits held for others 3,550 2,040 1,510 Other accrued liabilities 94, ,766 (67,316) Total Current Liabilities 1,525,073 11,285,002 (9,759,929) Accrued termination pay 2,430,028 2,328, ,645 Total Liabilities 3,955,101 13,613,385 (9,658,284) Net Assets Unrestricted 20,883,757 19,770,014 1,113,743 Total Net Assets 20,883,757 19,770,014 1,113,743 Total Liabilities and Net Assets $ 24,838,858 $ 33,383,399 $ (8,544,541)

9 46 FOR ACTION Board of Trustees Charles Stewart Mott Community College Regular Meeting, March 25, 2019 Volume Firewall Software & Support Maintenance Purchase Award Mott Community College purchases firewall software on a recurring basis to prevent unauthorized access to the college s computer network. An invitation to bid on a three-year term of firewall software and maintenance support was publicly posted to on January 30, Two (2) proposals were received on February 8, After evaluation of the bids and 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 Authorizes the Administration to award the purchase of firewall software and support maintenance to AmeriNet of Michigan, Inc., 1241 South Maple Road, Ann Arbor, Michigan, in the amount of $178, [one hundred seventy-eight thousand five hundred fifty dollars and zero cents]. Reviewed and Submitted by: Cheryl Shelton Chief Technology Officer Jody Michael Purchasing Manager 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.

10 47 Firewall Software & Support Maintenance ITB Results February 8, 2019 Vendor AmeriNet of Michigan, Inc S Maple Rd Ann Arbor, MI NetSolutions, LLC E McNichols Rd Detroit, MI Cost $178, $1,200,700.00

11 48 FOR ACTION Board of Trustees Charles Stewart Mott Community College Regular Meeting, March 25, 2019 Volume Antivirus Software & Support Maintenance Purchase Award Mott Community College purchases antivirus software on a recurring basis to protect the integrity of the college s digital infrastructure by finding and removing viruses and malware from computer hardware. An invitation to bid on a three-year term of antivirus software and maintenance support was publicly posted to on January 30, Two (2) proposals were received on February 8, After evaluation of the bids and 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 Authorizes the Administration to award the purchase of antivirus software and support maintenance to AmeriNet of Michigan, 1241 South Maple Road, Ann Arbor, Michigan 48103, in the amount of $184, [one hundred eighty-four thousand five hundred fourteen dollars and fifty cents]. Reviewed and Submitted by: Cheryl Shelton Chief Technology Officer Jody Michael Purchasing Manager 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.

12 49 Antivirus Software & Support Maintenance ITB Results February 8, 2019 Vendor NetSolutions, LLC E McNichols Rd Detroit, MI AmeriNet of Michigan, Inc S Maple Rd Ann Arbor, MI Cost $ * $184, *Incorrect bid submitted by proposer. Company did not respond to requests for bid clarification.

13 50 FOR ACTION Board of Trustees Charles Stewart Mott Community College Regular Meeting, March 25, 2019 Volume Low Voltage Cabling Installation Service Agreement Purchase Award Mott Community College (MCC) frequently requires the services of a certified low voltage cable contractor to install cable throughout its various facilities to enable and maintain the networking of equipment such as computers, multi-function print devices, cameras and other technology devices. An invitation to bid on a three-year service agreement was publicly posted to on February 11, Three (3) proposals were received on February 25, After evaluation of the bids and 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 Authorizes the Administration to award a low voltage cabling installation agreement to Weinstein Electric, 213 W 1st Street, Flint, MI. Reviewed and Submitted by: Cheryl Shelton Chief Technology Officer Jody Michael Purchasing Manager 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.

14 51 Low Voltage Cabling Installation Service Agreement ITB Results February 25, 2019 Weinstein Electric Amcomm Technologies, Inc. Hi-Tech System Service, Inc. 213 W 1 st St Emerson Dr 3070 Palms Rd Cost Flint, MI Brighton, MI Casco, MI st Cat5e Data drop, less than 150 feet, labeled, J- $ $ $ hooked, electronic testing report 2nd Cat5e Data drop at same location $ $ $ rd Cat5e Data drop at same location $ $ $ th Cat5e Data drop at same location $ $ $ st Cat5e Data drop, 150->300 feet, labeled, J- $ $ $ hooked, ed testing report 2nd Cat5e Data drop at same location $ $ $ rd Cat5e Data drop at same location $ $ $ th Cat5e Data drop at same location $ $ $1, st Cat6a Data drop, less than 150 feet, labeled, J- $ $ $ hooked, ed testing report 2nd Cat6a Data drop at same location $ $ $ rd Cat6a Data drop at same location $ $ $ th Cat6a Data drop at same location $ $1, $1, st Cat6a Data drop, 150->300 feet, labeled, J- $ $ $ hooked, ed testing report 2nd Cat6a Data drop at same location $ $ $ rd Cat6a Data drop at same location $ $ $1, th Cat6a Data drop at same location $ $1, $1, Access Points: Standard interior access point $70/hour $75/hour N/A installation for cameras Hard ceiling locations (Lapeer, Family Life Center) $70/hour $75/hour $150 to $175 per device Lift cost per hour $44/hour $40/hour $300/day Fiber testing $70/hour $90/hour $500/day

15 52 FOR ACTION Board of Trustees Charles Stewart Mott Community College Regular Meeting, March 25, 2019 Volume Architectural & Engineering Services Purchase Award Per Board Policy 4300 (Selection of an Architect/Duties and Responsibilities), whenever necessary, Mott Community College (MCC) will secure an architectural firm to provide architectural and engineering services to assist the college in planning for, constructing, and renovating college facilities. The architects also assist MCC providing operational support in the development and maintenance of a facilities master plan, campus design and construction standards, and implementation of an online file system to house and maintain all of MCC s drawings of record. A public request for proposals was posted to on December 12, Twenty (20) proposals were received on January 23, A crossdepartmental committee evaluated and scored the proposals, after which seven (7) firms were invited to present their proposals in further detail in front of the evaluation team. After evaluation of the bids and 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 Authorizes the Administration to award a contract for architectural and engineering services to H2A Architects, 9100 Lapeer Rd Ste B, Davison, MI and to Integrated Design Solutions, 1441 W Long Lake Rd, Troy, MI Reviewed and Submitted by: Lawrence A. Gawthrop Chief Financial Officer Jody Michael Purchasing Manager 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.

16 53 Architectural & Engineering Services RFP Responses January 23, 2019 Vendor Selected for Interview Selected for Award ATI Group 3419 Pierson Place Flushing, MI Incomplete Proposal Auger Klein Aller Architects, Inc. 214 S Broadway Ste 220 Lake Orion, MI DiClemente Siegel Design, Inc E Bristol Rd Burton, MI Gazall, Lewis & Associates Architects, Inc. 503 S Saginaw St Ste 100 Flint, MI Ghafari Associates, LLC Michigan Ave Dearborn, MI GMB Architecture + Engineering 225 S Main St Ste 200 Royal Oak, MI H2A Architects 9100 Lapeer Rd Ste B Davison, MI Hamilton-Anderson 1435 Randolph Street Ste 200 Detroit, MI Harley Ellis Devereaux Northwestern Hwy Ste 200 Southfield, MI Integrated Design Solutions 1441 W Long Lake Rd Troy, MI Lord Aeck Sargent (a Katerra Company) 213 S Ashley St Ste 200 Ann Arbor, MI 48104

17 54 Vendor Selected for Interview Selected for Award Mayotte Group Architects 6240 W Mt Hope Lansing, MI NORR, LLC 150 W Jefferson Ave Ste 1300 Detroit, MI NSA Architects, Engineers, Planners Research Dr Farmington Hills, MI Sedgewick + Ferweda Architects 410 E Court St Flint, MI Stantec 2338 Coolidge Highway Berkley, MI THA Architects Engineers 817 E Kearsley St Flint, MI Tower Pinkster Titus Associates, Inc. 242 E Kalamazoo Michigan Ave Ste 200 Kalamazoo, MI William A Kibbee & Associates, Inc S Washington Ave Saginaw, MI WTA Architects 100 S Jefferson Ave Ste 601 Saginaw, MI 48607

18 55 FOR ACTION 1.19 Tuition and Fee Increase Board of Trustees Charles Stewart Mott Community College Regular Meeting, March 25, 2019 Volume 48 In light of the 2.4% CPI increase in our local area, and the necessity to continue with sound business practices, while ensuring the availability of sufficient resources to provide quality programs and services supporting academic integrity, pathways, closing the achievement gap, and reducing barriers to promote student success, a less than inflationary tuition increase for the academic year beginning with the Fall 2019 semester is necessary. 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 tuition and fee increases to begin in the Fall 2019 semester as follows: 2018/2019 Academic Year Rate 2019/2020 Academic Year Rate Increase Per: In District Rate $ $ % Out of District Rate $ $ % Contact Hour Out of State Rate $ $ % Institutional Technology Fee $ 8.04 $ % Student Administrative Fee $ 9.75 $ % Semester Student Services Fee $ $ % Reviewed and Submitted by: Lawrence A. Gawthrop Chief Financial Officer Board Policy Statement Reference: 3310 Tuition and Fees General: Tuition and fees constitute a major source of revenue in support of a comprehensive program. The Board of Trustees acknowledges the importance of tuition and fees as a revenue source, while striving to hold rates at a reasonable level to enhance competitiveness in the marketplace and cost to students. (1). The Board will review and set tuition and fees periodically. (3). When fiscally prudent, tuition and fee increases will conform as much as possible to state tuition restraint guidelines.

19 56 FIRST READING 1.20 Amendments to Board Policy Section 3930 Board of Trustees Charles Stewart Mott Community College Regular Meeting, March 25, 2019 Volume 48 Following a recent review of Board Policy 3930 (Fiscal/Budget Reserves), it was noted that our General Operating Fund balance requirements were outdated given current best practices. Therefore, it is suggested that the language in Section 3930 be amended to increase the required fund balance for the General Operating Fund. This recommendation is based on industry norms and promotes greater long-term financial health of the College. On the basis of the preceding information, the following resolution is recommended for Board consideration. Be it Resolved, That The Charles Stewart Mott Community College Board of Trustees Amends Board Policy Section 3930, as detailed on page 57. Reviewed and Submitted by: Lawrence A. Gawthrop Chief Financial Officer Board Policy Statement Reference: 1800 Policy Development General: The Board shall review its policies and shall delete, amend, and supplement existing policies, and/or adopt new policies, as necessary.

20 Fiscal/Budget Reserves General: Fiscal and budget reserves are essential in order to maintain financial stability at the College. The following basic policy statements apply: 1. Basic budget reserves must be established in all funds to maintain stability, to protect the operation of the College during times of funding decline (local, state, national), unexpected emergencies, tax base erosion, or failure of millage or debt proposals. 2. A minimum An unrestricted fund balance must be established for each fund as specified: General Operating Fund = 5% - 10% 10% - 20% of general fund expenditures Building Site Fund = 1% - 3% of the college depreciated capital assets Maintenance & Repair Fund = 1% - 3% of the college depreciated capital assets (In the event that the minimum level specified may be in jeopardy, the President must notify the Board through its Finance/Audit Committee and prepare recommendations to attain the minimum prescribed level of fund balance.) 3. The Debt Service Fund must have a minimum balance sufficient to pay all principal and interest and other debt millage expenses for the entire year. 4. In addition to the fund balances specified above, a rainy day fund must be established in the amount of 1% of the operating funds. This fund will only be used when catastrophic revenue loss occurs, or exceptional expenditures are required beyond the capability of either the general operating fund or maintenance and replacement fund. 5. The Administration will explore the possibility of a building and site millage/sinking fund to provide appropriate revenues in expanding, maintaining, and improving capital facilities.

21 58 President s Report Regular Board of Trustees Meeting March 25, Institutional Priorities Report 2. Introduction of New Hires 3. Upcoming Dates ***** March 26, 2019 March 27, 2019 April 1, 2019 April 12, 2019 April 13-16, 2019 April 16, 2019 April 17, 2019 April 18, 2019 April 22, 2019 Breakfast Meeting with Higher Learning Commission, 7:30 a.m., Center for Teaching & Learning, Third Floor, Mott Library All-College Celebration, 2.30 p.m., Regional Technology Center Lenore Croudy Family Life Center Funders Breakfast, 8 a.m., Event Center The Foundation for Mott Community College Annual Donor Appreciation Lunch, 12 p.m., Event Center AACC Annual Convention, Orlando, FL Ballenger Eminent Persons Lecture Series Featuring Sonia Nazario Dinner, 5 p.m., Applewood Café, Public Event, 7 p.m., Event Center Finance/Audit Committee, 12 p.m., CM1019 Personnel Committee, 4 p.m., CM1019 MCCA Community College Day Reception, 11:30 a.m., Capitol Building Board Dinner, 5 p.m., Applewood Café Committee of the Whole, 6:45 p.m., Applewood Café Board Meeting, 7:30 p.m., Applewood Café