4) Approval of the Minutes from the May 15, 2014, Closed Session and Regular Meeting

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1 ALPENA COMMUNITY COLLEGE BOARD OF TRUSTEES REGULAR MEETING Thursday, June 19, 2014, 4:00 p.m. Closed Session, 7:00 p.m. Regular Session Roger C. Bauer Board Room, Room 400 of the Charles R. Donnelly Natural Resources Center 665 Johnson Street, Alpena, MI ) Call to Order 2) Pledge of Allegiance 3) Approval of Agenda 4) Approval of the Minutes from the May 15, 2014, Closed Session and Regular Meeting 5) Introduction of Guests and Public Comment 6) Communication(s) 7) Board Member and Subcommittee Reports 8) Faculty Report 9) Student Report 10) President s Report 11) Action Items FY Short Term Borrowing Ellucian Agreement Besser Technology Center Main Drive Replacement President s Contract 12) Information Items Financial Report Personnel Report Gifts and Grants Report 13) Board Discussion 14) New Business 15) Suggested Future Agenda Items

2 16) Next Regular Meeting: August 21, ) Adjournment

3 2.598 FY15 General Operating Fund, The General Operating Fund provides those resources necessary to carry out the day-today activities of the College. Several major economic factors impact FY 2015 budgeting. State aid is predicted to increase by 2.9% and property taxes are scheduled to decline slightly. Enrollment may decrease by 5% due to high ACC graduation rates in recent years, more available employment, reductions in student aid programs, and decline in graduate numbers from feeder high schools. Health care costs will lower because of legislative action. Therefore, the year will still require continued close monitoring of the budget throughout the entire year. In addition, the College will focus on accomplishing the following objectives: 1) Provide an adequate schedule of course offerings to serve a projected annualized enrollment of approximately 2,100 enrollees (1,220 F.T.E.) 2) Continue the assessment process of assuring the delivery of quality instruction and student services programs. 3) Continue refinement of selected career programs to assure that the offerings are attuned to modern technology and graduates are job ready. 4) Provide more defined and focused attention to recruitment and admission and retention activities in all areas through the marketing plan. 5) Further increase enrollments and refine services to be delivered by the Huron Shores Campus that will meet the needs of Iosco County. 6) Further implement personnel realignments to continue to improve the effectiveness of the capacity to deliver education services. 7) Address issues raised in the Action Plan as defined through the North Central Accreditation process. 8) Reassess the Campus Master Plan while considering the future use of the College s full 680 acres. 9) Continue implementing other aspects of the College s strategic plan. The various objectives specified have been identified with input from the Strategic Planning and ing Committee and will be achieved through the proposed financial plan for the General Operating Fund for.

4 ALPENA COMMUNITY COLLEGE Revenue -- General Operating Fund Taxes $ 2,540,658 $ 2,530,658 Tuition/Fees 5,941,680 5,869,680 State Aid 5,256,841 5,409,289 Other/Miscellaneous 338, ,028 $ 14,077,458 $ 14,027,655 Expenditure -- General Operating Fund Fine Arts $ 374,882 $ 357,696 Communications 811, ,548 Social Sciences 793, ,093 Mathematics 992, ,463 Sciences 1,081,400 1,053,626 Physical Education 19,488 23,329 Health Education 1,897 2,940 Business 191, ,872 Data Processing / Computer Science 294, ,345 Secretarial & Office 306, ,898 Law Enforcement / Public Service 194, ,607 Media Production Technology 8,003 7,900 Design Technology 20,269 16,299 Mechanical Trades & Service Technology 575, ,215 Construction Trades Technology 275, ,732 Electrical & Electronic Trades 371, ,414 Apprenticeship Instruction 38,402 49,385

5 ALPENA COMMUNITY COLLEGE Expenditure -- General Operating Fund - Continued Nursing 790, ,485 Other Health Related 116, ,446 Traditional Classroom 55,921 76,222 Learning Labs 15,085 18,008 Career Guidance / College Skills 5,466 5,642 Tutorial Instruction 104, ,546 Community Instruction Services 0 0 Library / Media Services 256, ,666 Off-Campus Admin. / Huron Shores 185, ,194 Instruction Administration 570, ,501 Student Services 94, ,338 Financial Aid 437, ,208 Admissions / Records 442, ,386 Data Processing 815, ,690 General Administration 323, ,084 Word Processing 131, ,658 Institutional Administration 1,273,758 1,335,381 Public Relations / Development 187, ,114 Resource Development / Grant Writing 151, ,348 Physical Plant 1,591,021 1,610,142 Transfers 178, ,233 $ 14,077,458 $ 14,027,655 Unrestricted General Operating Fund Balance Beginning Balance $ 1,105,301 $ 1,105,301 Surplus 0 0 Ending Balance $ 1,105,301 $ 1,105,301.

6 Designated Fund, The Designated Fund encompasses a variety of funds that service the non-curricular activities of students, staff and faculty. Specifically, this fund supports activities in seven categories: Athletics/Student Activities Professional and Contract Services Madeline Briggs University Center Technology World Center for Concrete Technology Special Events/Staff Development Community Education Athletics/Student Activities All co-curricular activities of the institution are supported from this budget, which derives its revenue primarily from a student services fee that the student pays upon enrolling in classes at the College. The budget provides support for a broad range of student needs, including the student newspaper, student activities, athletics, intramurals, and the Wellness Center. Professional and Contract Services (PCS) The PCS is charged with carrying out a varied array of contracted services for area business and industry. Madeline Briggs University Center In order to provide additional educational opportunities for our graduates who wish to stay close to home, partnerships were established with four-year institutions to offer classes on campus. This year s budget is $8,904. Technology This fund is for the acquisition of new or updated technology. This fund was instrumental in acquisition and installation of the Datatel (Colleague) student database system. A budget of $161,000 has been established with approximately $95,000 earmarked for rotation. World Center for Concrete Technology A fund to provide support activities and operations necessary for the World Center for Concrete Technology continues this year with a modest budget of $120,250. It should be noted that this activity is supported through sales of services, user fees, and other non-taxable revenues.

7 Special Events/Staff Development Each year the College supports a wide range of activities that enhance the capacity of our staff to be more productive and valuable employees. Due to budgetary concerns, staff development funds were eliminated last year. This year s budget restores the $16,000 available for staff development with a match of $16,000 in travel. In addition, a number of special events are sponsored to assist the College in better communicating its leadership role to the service area (e.g. Science Olympiad, counselor workshops, etc.) A budget of $5,500 is projected for these activities. Community Education An aggressive approach to community education in a short course format began several years ago. In this next year, the College estimates $18,000 in revenues with $8,145 going to support the Volunteer Center that directs its activities.

8 ALPENA COMMUNITY COLLEGE Designated Fund Athletics / Student Activities Revenue Fees $ 233,200 $ 219,050 Gate Receipts / Miscellaneous 1,968 1,000 Fitness Wellness Center Fees 29,000 24,000 Transfers 16,932 49,945 Total Revenues $ 281,100 $ 293,995 Expense Administration $ 43,725 $ 49,725 Men's Basketball 37,462 37,462 Women's Basketball 37,911 33,961 Women's Volleyball 15,961 15,961 Women's Softball 16,261 16,261 Cross Country 9,179 9,179 Subtotal (Athletics) 160, ,549 Fitness Wellness Center 115, ,446 Campus Activity Board 5,000 5,000 Lumberjack Intramurals Phi-Theta Kappa Student Senate Other Activities Subtotal (Student Activities) 120, ,446 Total Expenses $ 281,100 $ 293,995

9 ALPENA COMMUNITY COLLEGE Designated Fund (Continued) Professional and Contract Services Revenue Sales and Service $ 2,500 $ 2,500 Transfers 0 0 Total Revenues $ 2,500 $ 2,500 Expense Salaries - Instruction $ 1,500 $ 1,500 Salaries - Admin. / Admin. Tech. 0 0 Fringe Benefits 1,000 1,000 All Other Expense 0 0 Total Expenses $ 2,500 $ 2,500 Madeline Briggs University Center Revenue Sales and Service $ 8,655 $ 8,655 Reimbursements Total Revenues $ 8,904 $ 8,904 Expense Wages & Fringes $ 0 $ 0 Other 8,904 8,904 Transfer 0 0 Total Expenses $ 8,904 $ 8,904

10 ALPENA COMMUNITY COLLEGE Designated Fund (Continued) Technology Revenue Technology Fee $ 170,000 $ 161,000 Expense Transfer to Debt service 0 0 Equipment and Services 170, ,000 World Center for Concrete Technology $ 170,000 $ 161,000 Revenue Sales & Services $ 110,250 $ 110,250 Transfer 17,500 10,000 Expense $ 127,750 $ 120,250 Wages $ 60,998 $ 62,784 Fringe Benefits 39,815 26,757 Contract Services 1,825 16,825 Supplies 5,900 9,534 Plant Costs/Utilities 4,350 4,350 Capital Maintenance and Replacement 0 0 Other 0 0 Transfer 0 0 Total Expenses $ 112,888 $ 120,250

11 ALPENA COMMUNITY COLLEGE Designated Fund (Continued) Special Events / Staff Development Revenue Special Events - Contracted Services $ 5,500 $ 5,500 Staff Development - Gen. Fund Transfer 0 0 Total Revenues $ 5,500 $ 5,500 Expense Special Events - Supplies / Awards $ 5,500 $ 5,500 Staff Development - Workshops / Grants 0 0 Total Expenses $ 5,500 $ 5,500 Community Education Revenue Participation Fees $ 20,000 $ 18,000 Total Revenues $ 20,000 $ 18,000 Expense Wage and Fringe Benefits $ 2,925 $ 2,925 Program Costs 4,575 6,930 Transfer to Volunteer Center 12,500 8,145 Total Expenses $ 20,000 $ 18,000 TOTAL DESIGNATED FUND Revenue $ 615,754 $ 610,149 Expense $ 600,892 $ 610,149

12 Auxiliary Enterprises Fund, The Auxiliary Enterprises Fund consists of those activities that directly generates revenue to accomplish their objectives. The following six areas constitute enterprises within the fund: College Bookstore Food Service Auto Service and Auto Body Performing and Fine Arts Housing Transportation College Bookstore The Bookstore continues to contribute a positive margin while providing a high level of service to the College community. The Bookstore will be replacing its 12-year-old operating system this year. Software, hardware and training will run about $26,000. The Bookstore projects a net operating surplus of $31,000 to be transferred to other funds. Food Service The College has contracted with Fremont Catering of Alpena, Michigan, for operation of the cafeteria. A management fee of $10,000 per year is budgeted out of the vending proceeds and General Funds. Auto Service and Auto Body The College operates various special services keyed to individual instructional areas to improve the economic viability and quality of life throughout Northeast Michigan. There are $78,000 in services to be delivered in FY15. Performing and Fine Arts The additions of Park Arena and Granum Theatre have enhanced the ability of the College to provide cultural activities for both its student body and the community. There are no planned events for the upcoming budget year. Housing The College has available 16 units of affordable housing for 64 students provided through a private developer. It is anticipated that ground lease revenues for the coming year will total $2,158. Transportation

13 Transportation covers all College functions related to the use of College-owned vehicles and is paid for through interdepartmental transfers. The revenue budget for activities is estimated at $13,000.

14 ALPENA COMMUNITY COLLEGE Auxiliary Enterprises Fund Bookstore Revenue Book Sales $ 667,790 $ 598,890 Book Sales - Financial Aid and Interdepartmental 423, ,990 Sales Tax Remittance (55,000) (52,000) Total Revenues $ 1,036,453 $ 943,880 Expense Purchases for Resale $ 727,375 $ 660,716 Salaries 127, ,810 Fringe Benefits 53,061 50,055 Equipment 2,000 24,000 All Other 45,500 40,550 Administrative Overhead 70,000 20,749 Transfers 11,000 11,000 Total Expenses $ 1,036,453 $ 943,880 Food Service Revenue Sales & Service $ 12,000 $ 6,000 Transfer 0 6,000 Total Revenues $ 12,000 $ 12,000 Expense Contract Service $ 12,000 $ 10,000 Supplies 0 2,000 Total Expenses $ 12,000 $ 12,000

15 ALPENA COMMUNITY COLLEGE Auxiliary Enterprises Fund (Continued) Auto Service & Auto Body Revenue Sales and Service $ 78,000 $ 78,000 $ 78,000 $ 78,000 Expense Cost of Goods / Services Sold $ 78,000 $ 78,000 Total Expenses $ 78,000 $ 78,000 Housing Revenue Total Revenues $ 2,122 $ 2,158 Expense Transfer $ 2,122 $ 2,158 Transportation Revenue Total Revenues $ 13,000 $ 13,000 Expense Maintenance $ 13,000 $ 13,000 Total Expenses $ 13,000 $ 13,000

16 ALPENA COMMUNITY COLLEGE Auxiliary Enterprises Fund (Continued) TOTAL AUXILIARY ENTERPRISES FUND Revenue $ 1,141,575 $ 1,049,038 Expense $ 1,141,575 $ 1,049,038

17 Restricted Fund, Various external grants from both private (e.g., foundations) and public (e.g., state and federal) sources support several activities of the College that are critical to providing quality educational experiences for our students. Ten primary areas are directly affected by these grants and individual budgets are provided for each. Though funding has been in place for many years (e.g., TRIO projects), in FY 2013 increased funding became available for Talent Search, but ceased for Upward Bound; in other areas, regulations are changing and competition is increasing (e.g., private and governmental contract training) such as the NSF grant, for which funding ended in FY 2014, and TAACCCT-DOL grant in its last year, and in selected areas, new territories are being successfully explored to provide external support for important College objectives (e.g., Christmas Wish). It should be noted that funding for various student aid programs (e.g., Pell, SEOG, etc.) is also classified in the Restricted Fund. It should further be noted that given the reduced level of hard money for FY2015 it would be critical to the achievement of College objectives that these external soft monies be obtained during the coming year.

18 ALPENA COMMUNITY COLLEGE Restricted Fund TRIO Grants Revenue Talent Search Grant Funds $ 526,106 $ 526,106 Indirect Cost Recovery (38,955) (38,955) Student Support Services Grant Funds 254, ,563 Indirect Cost Recovery (20,365) (20,365) Total Revenues $ 721,349 $ 721,349 Expense Talent Search Wages / Salaries $ 232,990 $ 196,218 Fringe Benefits 87,014 95,676 Supplies and Other 167, , , ,151 Student Support Services Wages / Salaries 127, ,204 Fringe Benefits 78,049 76,057 Supplies and Other 28,390 14, , ,198 $ 721,349 $ 721,349

19 ALPENA COMMUNITY COLLEGE Restricted Fund (Continued) Perkins Vocational / Applied Technical Education Revenue Special Populations Grant Funds $ 63,389 $ 48,320 Instructional Equipment Grant Funds 12,364 25,864 College Local Leadership Grant Funds 17,000 17,000 Total Revenues $ 92,753 $ 91,184 Expense Special Needs / Special Populations Wages / Salaries $ 43,297 $ 33,528 Fringe Benefits 20,092 14,792 Supplies and Other 0 0 Subtotal 63,389 48,320 Instructional Equipment Equipment 12,364 25,864 Expense College Local Leadership Salaries / Benefits $ 16,471 $ 16,835 Travel / Other Subtotal 17,000 17,000 Total Expenses $ 92,753 $ 91,184

20 ALPENA COMMUNITY COLLEGE Restricted Fund (Continued) College Work Study Revenue Grants $ 70,000 $ 67,000 Expense Student Wages $ 70,000 $ 67,000 Pell Grant Revenue Federal Grant $ 4,250,000 $ 4,100,000 Expense Awards $ 4,250,000 $ 4,100,000 Supplemental Educational Opportunity Grant Revenue Federal Grant $ 72,000 $ 72,000 Expense Awards $ 72,000 $ 72,000

21 ALPENA COMMUNITY COLLEGE Restricted Fund (Continued) TAACCCT-DOL Grant Revenue Grant 837, ,056 Indirect Cost Recovery (39,865) (48,096) Total Revenue $ 797,250 $ 515,960 Expense Salary 391, ,640 Fringe Benefits 227, ,932 Contract Services 98,500 10,000 Supplies 50,000 10,000 Travel 25,000 11,388 Equipment 0 0 Other 5,000 0 Total Expenses $ 797,250 $ 515,960 NSF/Concrete Technology Grant Revenue Grant 77,700 0 Indirect Cost Recovery (3,700) 0 Total Revenue $ 74,000 $ 0 Expense Salary 35,723 0 Fringe Benefits 20,504 0 Contract Services 6,000 0 Supplies Travel 6,426 0 Equipment 4,847 0 Total Expenses $ 74,000 $ 0

22 ALPENA COMMUNITY COLLEGE Restricted Fund (Continued) Christmas Wish Revenue Donations $ 19,000 $ 17,000 Expense Supplies and Purchases 3,000 9,000 Transfers 16,000 8,000 Travel $ 19,000 $ 17,000 Volunteer Center Revenue Local Support $ 13,707 $ 13,707 Sales and Services 0 0 Besser Grant 29,000 29,000 Transfers 28,500 16,145 Total Revenues $ 71,207 $ 58,852 Expense Wages / Salaries $ 44,322 $ 37,983 Fringe Benefits 26,885 20,869 Total Expenses $ 71,207 $ 58,852 TOTAL RESTRICTED FUND Revenue $ 6,167,559 $ 5,643,345 Expense $ 6,167,559 $ 5,643,345

23 Capital Equipment/Building Maintenance Fund, The Capital Equipment/Building Maintenance Fund provides the financial resources necessary to undertake those critical projects included in the planning process for the College to preserve and enhance its capital assets. The past five years have seen an extensive amount of work accomplished in this area with well over 100 individual projects completed. A major portion of institutional equipment will be purchased through the fund rather than the General Operating Fund of the College, and these purchases will be institution-wide. Additionally, the Board-authorized facility fee is receipted in this fund to support long-term capital needs of the institution.

24 ALPENA COMMUNITY COLLEGE Capital Equipment / Building Maintenance Fund Revenue Facilities Fee $ 275,000 $ 250,000 Transfer from General Fund 77, ,788 Transfer 0 0 Mandatory Transfer 0 0 Total Revenues $ 352,015 $ 363,788 Expense Equipment $ 38,883 $ 37,334 Contract Services - Renovations 41,300 41,300 Contract Services - Maint. Projects 70,832 84,154 Debt Service Transfer 201, ,000 Total Expenses $ 352,015 $ 363,788

25 Plant Fund, The Plant Fund is the depository for various state/local grants that are directed toward the construction of capital projects. The Electrical Power Technology Center as an addition to the World Center for Concrete Technology began construction this past Spring with an anticipated completion time of early January, 2015.

26 ALPENA COMMUNITY COLLEGE Plant Fund Revenue State Capital Outlay - EPTC $ 2,500,000 $ 2,500,000 Transfer from Prior Year Revenues 0 922,800 Donations 1,000, ,000 Total Revenues $ 3,500,000 $ 3,922,800 Expense Professional Fees $ 175,000 $ 100,000 Site Improvements 193, ,000 Construction in Progress 3,500,000 3,675,000 Transfer to Debt Service 22,800 22,800 Total Expenses $ 3,891,400 $ 3,922,800

27 Debt Service Fund, The College refinanced the General Obligation Limited Tax Bond issued in There was $720,000 remaining on the bond. An additional $1,355,000 was added to help cash flow the construction of the Electrical Power Technology Center project. The Bond is for only ten years. The funding to retire the additional $1,355,000 is to come from pledges for the project. The refinancing will save approximately $70,000 in interest over the remaining eight years of the bond. In 2004, the College financed the acquisition of the Datatel Colleague Student Administration Software with an $800,000 bond for ten years. The College completed the retirement in FY A schedule of these annual payments totaling approximately $226,805 for FY15 and beyond is available for review.

28 ALPENA COMMUNITY COLLEGE Debt Service Fund Revenue Transfer Facility Fee $ 201,000 $ 201,000 Transfer Plant Fund 22,800 25,805 Transfers - General Fund 98,800 0 Total Revenues $ 322,600 $ 226,805 Expense Interest $ 37,600 $ 31,805 Principal 285, ,000 Total Expenses $ 322,600 $ 226,805

29 Therefore, The following resolution is proposed: That the Board of Trustees accepts the budget as presented for FY2015.

30 2.599 Short-Term Borrowing OPERATING LOAN RESOLUTION Alpena Community College, Michigan (the "Issuer"). A regular meeting of the Board of Trustees (the "Board") of the Issuer, was held on June 19, 2014, at 665 Johnson Street, Alpena, Michigan, within the boundaries of the Issuer. The meeting was called to order at o'clock, p.m., by Chairperson. Present: Trustees Absent: Trustees The following preamble and resolution were offered by Trustee by Trustee. and supported WHEREAS: 1. This Board has periodically negotiated the issuance and sale of operating notes of the College pursuant to Section 127 of 331 PA 1966; and 2. The College has filed an application for qualified status to issue obligations which has been approved by the Michigan Department of Treasury ("Treasury") pursuant to Act 34, Public Acts of Michigan, 2001, as amended; and 3. This Board has determined that it is administratively cost-efficient to solicit bids for the operating notes, having found that competitive bidding through solicitation for bids has been advantageous to the College; and 4. This Board has been informed by the Vice President for Administration and Finance (the "Vice President") that the Issuer has received ( ) bids for the purchase of an Operating Fund Note of the College in the amount of Eight Hundred Thousand Dollars ($800,000) (the "Note"), the analysis of said bids is attached hereto as Exhibit A; and NOW, THEREFORE, BE IT RESOLVED THAT: 5. The Board hereby ratifies and affirms the terms of the "Solicitation for Bids" attached hereto as Exhibit A. 6. The Board hereby accepts the bid of (the "Purchaser") for the purchase of the Note and authorizes the Board Chairperson and the Vice President

31 for Administration and Finance to issue, sell and deliver the Note in the amount of Eight Hundred Thousand Dollars ($800,000), to be dated July 1, 2014, or date of delivery, due January 30, 2015, bearing interest based on a 360-day year, 30-day month, to the Purchaser at the rate shown on the Certificate of Acceptance and Award of Bids. 7. The Board hereby designates the Note as a "qualified tax-exempt obligation" within the meaning of the Internal Revenue Code of 1986, as amended (the "Code"). 8. The limited tax, full faith, credit and resources of the College is hereby pledged for the payment of the Note. The Note is payable from ad valorem taxes which will be levied within the authorized constitutional and statutory millage rate available to the College for such purposes and an irrevocable appropriation of a sufficient amount of such taxes for the fiscal year has been made as a first budget obligation from such millage rate for the payment of the principal of and interest on the Note when due. If taxes are insufficient to pay the Note when due, the College has pledged to use any and all other resources available for the payment of the Note. The College does not have the power to levy taxes for the payment of the Note in excess of its constitutional or statutory tax rate limitations. The College reserves the right to issue additional notes of equal standing. 9. Within fifteen (15) business days after issuance of the Notes, the Board hereby authorizes and directs the Vice President or designee to cause to be filed with the Michigan Department of Treasury any and all documentation required subsequent to the issuance of the Note, along with any statutorily required fee. 10. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same are hereby rescinded. Ayes: Nays: Trustees Trustees Resolution declared adopted. Secretary, Board of Trustees The undersigned, duly qualified and acting Secretary of the Board of Trustees of Alpena Community College, Michigan, hereby certifies that the foregoing constitutes a true and complete copy of a resolution adopted by said Board of Trustees at a regular meeting held on June 24, 2013, the original of which is part of the Board's minutes. The undersigned further certifies that notice of the meeting was given to the public pursuant to the provisions of the "Open Meetings Act" (Act 267, PA 1976, as amended). PJB/kmh Secretary, Board of Trustees

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34 2.600 Ellucian Agreement Alpena Community College entered into a ten (10) year maintenance agreement with Datatel, now Ellucian, when the Datatel Colleague Database Management System was purchased in November That contract called for a maximum of 4% increases per year for the duration of the contract. Ellucian stated that the cost increases for the software maintenance of Colleague has been in the six to seven percent range. To bring the College up to the current rates charged to other customers would be a 64% increase or $58,865. The College s maintenance fee started ten years ago at about $60,000. Our current maintenance fee is $86,190. Ellucian has proposed several options on a continued maintenance agreement. One year agreement at an increase of $58,865, Three year agreement with the first year increase of $13,810 for a total base of $100,000 and increasing at a base increase of 6% per year plus prior year recovery at $19,622 increase per year for three years, Five year agreement with the first year increase of $13,810 for a total base of $100,000 and increasing at a base increase of 5% per year plus prior year recovery at $11,773 increase per year for five years, Ten year agreement with the first year increase of $13,810 for a total base of $100,000 and increasing at a base increase of 4.5% per year plus prior year recovery at $5,887 increase per year for ten years. The ten year proposal appears to be the most financially acceptable option. The savings over the three year plan is $377,333 versus the ten year plan and over the five year plan is $170,263. The ten year proposal effectively reflects approximately a 6% increase over the entire 20 years of service. Colleague has performed well for the College over the last ten years. MIS staff and the Vice President for Administration and Finance do not see a reason for the College to look elsewhere for a database management system over the next ten years. Therefore, The following resolution is proposed: That the Board of Trustees authorizes appropriate College officials to contract with Ellucian to provide maintenance services for our Colleague Database Management System July 1, 2014 for ten years ending June 30, 2024 at costs expressed in the proposal.

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38 2.601 Besser Technology Center Main Drive Replacement The main drive for the Besser Technology Center parking lot and the only drive to the Newport Center parking lot is in dire need of replacement. The driveway is nearly 19 years old and has held up well considering its use. However, the College has been patching the numerous pot holes for several years with limited success while additional potholes appear. To continue patching is no longer practical. This drive is the most used on campus and as a result we are receiving many complaints from the public. The area needing replacing extends from Johnson Street to the end of the BTC parking lot, comprising 576 linear feet and approximately 32,600 square feet of asphalt. The proper way to repair the drive is to pulverize the existing asphalt, re-grade and compact, then pave with 3 inches of asphalt. The total cost of the project should be under $50, Bids for the project will not be available until June 19; a final action item will be presented at the June 19 board meeting.

39 2.602 President s Contract The president was employed under the terms of a three-year contract dated July 1, 2011, scheduled to terminate on June 30, The Board will consider the terms of a new contract for the president after the president s performance evaluation has been completed at a closed meeting of the Board scheduled prior to the start of the open portion of the June 19 meeting.

40 3.798 Financial Report Monthly General Fund Revenue and Expense through May 2014 (Year to Year Actual Comparison) The property tax receipts of $2,529,651 were $28,223 less than those for May Property tax was expected to be lower than last year, and the decrease was budgeted. Tuition/fee receipts of $5,966,667 are $397,423 lower than last year because of lower enrollments so far this year. State aid is where it is expected to be for this time of year. Federal funds are greater than last year because of a positive adjustment to indirect cost recovery for a grant. Instruction costs are down due to fewer sections being offered which caused lower overload and adjunct pay. MIS expense is lower due to timing of equipment purchases, lower contract services cost, and reduction in technician hours. Physical Plant expense is higher due to higher utility costs. Net income through the eleventh month of the year shows a $167,617 loss, which is to be expected with a tight budget and before year end adjusting entries are made. Monthly General Fund Revenue and Expense through May 2014 ( to Actual Comparison) The tuition/fee revenue is level for budget because of a strong summer enrollment and the enrollment adjustments made in October Outside services expense is ahead of schedule due to the completion of union bargaining earlier than anticipated. Advertising expense is up due to a concerted effort to improve enrollment. Cost for utilities are higher due to the abnormally low temperatures over the winter and spring months. Insurance is higher with the College receiving the worker s compensation invoice earlier than last year and higher unemployment insurance charges. Expense for library books and equipment is up due to timing of purchases. All other categories are in acceptable ranges for this stage of the year. General Fund Month to Month Comparison through May 2014 The Month to Month comparisons are tracking as expected except as described above.

41 Alpena Community College General Fund Year to Year Actual Comparison For the Eleven Months Ending May 31, 2014 YTD Actual YTD Actual FY 2014 FY 2013 Variance Revenue Property Tax 2,529,651 2,557,874 (28,223) Tuition/Fees 5,966,667 6,364,090 (397,423) Sales, Services, and Rent 9,238 8,051 1,187 State Aid 3,843,006 3,770,064 72,942 Federal 155,351 95,372 59,979 Donations 1, ,000 Interest 978 1,450 (472) Other 1,317 1,516 (199) Revenue 12,507,208 12,798,417 (291,209) Expense Instruction 6,696,331 6,816,378 (120,047) MIS 741, ,043 (24,658) Instruction Support 971, ,100 38,764 Student Services 937, ,655 (3,245) Institutional Administration 1,787,509 1,787,962 (453) Physical Plant 1,522,375 1,428,408 93,967 Transfers 17,951 3,810 14,141 Expenses 12,674,825 12,676,356 (1,531) Income (167,617) 122,061 (289,678) Net Assets - Beginning of Year 1,105,301 1,002, ,482 Net Assets - End of Year 937,684 1,124,880 (187,196)

42 Alpena Community College Comparative Income Statement General Fund For the Eleven Months Ending May 31, 2014 FY 2014 FY 2013 YTD Actual Variance Complete Complete Revenue Property Tax 2,540,658 2,529,651 (11,007) 99.57% % Tuition/Fees 5,946,680 5,966,667 19, % 97.99% Sales, Services, and Rent 14,000 9,238 (4,762) 65.99% 67.09% State Aid 5,256,841 3,843,006 (1,413,835) 73.10% 73.15% Federal 188, ,351 (32,778) 82.58% 74.43% Donations 50,500 1,000 (49,500) 1.98% 0.00% Interest 2, (1,522) 39.13% 16.11% Other 73,150 1,317 (71,833) 1.80% 2.07% Revenue 14,072,458 12,507,208 (1,565,250) 88.88% 88.67% Expense Salaries 7,653,379 7,064, , % 92.68% Fringe Benefits 4,033,648 3,613, , % 87.35% Outside Services 572, ,557 20, % 86.89% Advertising 178, ,875 11, % 75.10% Supplies 255, ,607 76, % 76.42% Rental 8,000 6,040 1, % 0.00% Utilities 447, ,088 (19,988) % 86.35% Telephone 48,000 48,493 (493) % 96.69% Postage 45,000 36,116 8, % 69.77% Insurance 157, ,455 (9,455) % 82.04% Travel & Mileage 71,200 63,788 7, % 96.67% Tuition Waivers 209, ,621 (4,421) % 93.54% Library Books & Equipment 73,640 37,984 35, % 30.07% Other 153,600 42, , % 43.76% Transfers 166,334 17, , % 1.67% Expense 14,072,458 12,674,824 1,397, % 87.82% Income 0 (167,616) Net Assets - Beginning of Year 1,105,301 1,105,301 Net Assets - End of Year 1,105, ,685 Percent of Year Complete 91.67%

43 Alpena Community College General Fund Month to Month Tracking For the Eleven Months Ending May 31, 2014 July August September October November December January February March April May June YTD Revenue Property Tax 115, ,304 22,323 6,917 4, , , , , , ,529,651 0 Tuition/Fees 2,598, ,107 (25,004) 880,726 1,010, , ,912 (15,462) 35,218 97,802 17, ,966,667 0 Sales, Services, and Rent , , ,238 0 State Aid 0 10, , , , , , , , , ,843,006 0 Federal 0 14,038 19,451 12,672 10,832 7,580 43,608 9,340 15,249 10,461 12, ,351 0 Donations 0 1, ,000 0 Interest Other ,317 0 Revenue 2,714, ,994 17,676 1,376,064 1,516, ,778 2,003,266 1,150, , , , ,507,208 0 Expense Salaries 528, , , , , , , , , , , ,064,194 0 Fringe Benefits 287, , , , , , , , , , , ,631,495 0 Outside Services 135,345 21,244 66,906 26,723 39,337 50,602 9,183 31,545 79,932 32,693 58, ,557 0 Advertising 16,684 19,348 25,898 7,034 15,751 12,083 30,659 10,295 3,344 7,942 17, ,875 0 Supplies 4,071 14,827 16,742 26,980 12,538 16,226 13,887 23,909 17,766 14,067 17, ,607 0 Rental 2, ,416 0 (199) , ,040 0 Utilities ,593 27,664 33,732 36,455 44,559 55,627 63,972 65,723 68,274 47, ,088 0 Telephone 432 5,123 8, , ,685 4,811 8,751 4, ,493 0 Postage 283 5,206 1,746 5,110 2,582 8, ,234 1,588 5, ,116 0 Insurance 68,227 2,275 26,501 23,026 2,700 42, , ,455 0 Travel & Mileage 1,914 4,242 6,069 5,855 3,266 13,450 4,157 2,559 2,916 6,409 12, ,788 0 Tuition Waivers 26,711 71,524 4, , ,212 (1,175) 16,149 1, ,621 0 Library Books & Equipment 5,793 17,046 2, , , , ,984 0 Other 212 1,504 2,513 11, ,480 4,887 4,640 5, , ,511 0 Transfers Expense 1,077,576 1,017,433 1,051,064 1,098,801 1,442,488 1,100,741 1,016,008 1,245,123 1,198,448 1,081,716 1,345, ,674,824 0 Income 1,637,302 (85,439) (1,033,388) 277,263 74,465 (265,963) 987,258 (94,147) (432,728) (393,695) (838,537) 0 (167,616) 0

44 3.799 Personnel Report New hires, terminations, and status changes for May New Hires: N/A Terminations: N/A Status Changes: Kasey Solo from ESP1 PT Educational Talent Search Secretary to ESP1 FT A/P Secretary, effective 5/27/14.

45 3.800 Gifts and Grants Report This report reflects the following activity for pledges and gifts received by the College and its Foundation between May 8, 2014, and June 10, TOTAL GIFTS & PLEDGES: $72,126 TOTAL DONORS: 71