AGENDA SPECIAL MEETING OF THE BOARD OF TRUSTEES. September 11, :00 p.m.

Transcription

1 AGENDA SPECIAL MEETING OF THE BOARD OF TRUSTEES September 11, :00 p.m. HCC Administration Building 3100 Main, 2nd Floor, Seminar Room B Houston, Texas 77002

2 NOTICE OF A SPECIAL MEETING OF THE BOARD OF TRUSTEES HOUSTON COMMUNITY COLLEGE September 11, 2014 Notice is hereby given that the Board of Trustees of the Houston Community College will hold a Special Meeting on Thursday, the eleventh (11 th ) day of September 2014, at 3:00 p.m., or after, and from day to day as required, at HCC Administration Building, 3100 Main, 2 nd Floor in Seminar Room B, Houston, Texas, The items listed in this Notice may be considered in any order at the discretion of the Chair or Board and items listed for closed session may be discussed in open session and vice versa as permitted by law. The Board may take final action with regard to items listed in this Notice without further action at a Regular Board Meeting. I. Call to Order II. Topics for Discussion and/or Action A. Effective, Rollback, and Debt Service Tax Rates Calculations. B. Bond Construction Manager-at-Risk Services for Project A & Relocated Project B (Project No. RFP 14-04). C. Bond Construction Manager-at-Risk Services for Project N Coleman Campus (Project No. RFP 14-04). III. Adjournment to closed or executive session pursuant to Texas Government Code Sections ; and , the Open Meetings Act, for the following purposes: A. Legal Matters 1. Consultation with legal counsel concerning Modification to Indemnity Policy. 2. Consultation with legal counsel concerning matters on which the attorney s duty to the System under the Texas Disciplinary Rules of Professional Conduct clearly conflicts with the Texas Open Meetings Laws. B. Personnel Matters 1. Deliberate the appointment, employment, evaluation, duties, leave, or to hear complaints or charges against employees or board members. Page 1 of 3

3 Houston Community College Special Meeting September 11, 2014 C. Real Estate Matters 1. Deliberate the purchase, exchange, lease, or value of real property for Agenda items if deliberation in an open meeting would have a detrimental effect on negotiations. Reconvene in Open Meeting IV. Additional Closed or Executive Session Authority If, during the course of the meeting covered by this Notice, the Board should determine that a closed or executive meeting or session of the Board should be held or is required in relation to any items included in this Notice, then such closed or executive meeting or session as authorized by Section et seq. of the Texas Government Code (the Open Meetings Act) will be held by the Board at that date, hour and place given in this Notice or as soon after the commencement of the meeting covered by the Notice as the Board may conveniently meet in such closed or executive meeting or session concerning Section For the purpose of a private consultation with the Board s attorney on any or all subjects or matters authorized by law. Section For the purpose of discussing the purchase, exchange, lease or value of real property. Section For the purpose of considering a negotiated contract for a prospective gift or donation. Section For the purpose of considering the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee or to hear complaints or charges against a public officer or employee. Section To consider the deployment, or specific occasions for implementation of security personnel or devices. Section For the purpose of considering discipline of a student or to hear a complaint by an employee against another employee if the complaint or charge directly results in a need for a hearing. Section For the purpose of excluding a witness or witnesses from a hearing during examination of another witness. Should any final action, final decision, or final vote be required in the opinion of the Board with regard to any matter considered in such closed or executive meeting or session, then such final action, final decision, or final vote shall be at either: Page 2 of 3

4 Houston Community College Special Meeting September 11, 2014 A. The open meeting covered by this Notice upon the reconvening of the public meeting, or B. At a subsequent public meeting of the Board upon notice thereof, as the Board shall determine. V. Adjournment Certificate of Posting or Giving of Notice On this the 8 th day of September 2014, at or before 3:00 p.m., this Notice was posted at a place convenient to the public and readily accessible at all times to the general public at the following locations: (1) the HCC Administration Building of the Houston Community College, 3100 Main, First Floor, Houston, Texas 77002; (2) the Harris County s Criminal Justice Center, 1201 Franklin, Houston, Texas 77002; (3) the Fort Bend County Courthouse, 401 Jackson, Richmond, Texas 77469; and (4) the Houston Community College System s website, The Houston Community College s Fort Bend County public meeting notices may be viewed after hours (i.e. between the hours of 5:30 p.m. and 7:30 a.m.) on the kiosk located on the west side of the new Fort Bend County Courthouse (the William B. Travis Building ), located at 309 South Fourth Street, Richmond, Texas Sharon R. Wright, Manager Board Services Page 3 of 3

5 ACTION ITEM Meeting Date: September 11, 2014 ITEM NO. ITEM TITLE PRESENTER A Effective, Rollback, and Debt Service Tax Rates Calculations Dr. Cesar Maldonado Teri Zamora RECOMMENDATION Vote on the 2014 proposed tax rate of $ for the public's consideration and discuss the Effective, Rollback, and Debt Service Tax rates calculations. The proposed tax rate of $ is $ higher than last year s 2013 adopted rate. DESCRIPTION OR BACKGROUND Chapter 26 of the Property Tax code requires taxing units to comply with the truth-in-taxation statutes in adopting their tax rates. A taxing unit must calculate and publish its effective and rollback tax rates before adopting an actual rate. The purpose of the law is to make taxpayers aware of the tax rate proposed and to allow taxpayers, in certain cases, to roll back or limit a tax increase. The proposed tax rate compares to the previous tax year as follows: Proposed Actual Tax Rate Difference M&O Debt Total Proposed Rate The Board will discuss potential tax rates for 2014, propose a rate for the public's consideration, and schedule two public hearings. The effective and rollback tax rates will be posted on the HCC website and published in the Houston Chronicle on Monday, September 8, 2014 in order to comply with the Truth-In-Taxation, Property Tax Code, Chapter 26. In October, the Board will finalize and adopt a 2014 tax rate. The two public hearings are scheduled as follows: The first public hearing will be held on Thursday, October 2, 2014 at 3:30 p.m. at the HCC Administration Building, 3100 Main, 2 nd Floor. The second public hearing will be held on Tuesday, October 7, 2014 at 3:30 p.m. at the HCC Administration Building, 3100 Main, 2 nd Floor. STRATEGIC GOAL ALIGNMENT Strategy Initiative: Support Innovation Attachment Title(s): 1. Tax Rate Planning Calendar 2. Notice Regarding 2014 Property Tax Rates 3. Effective Tax Rate Worksheet for 2014 This item is applicable to the following: Central Coleman Northeast Northwest Southeast Southwest /9/2014 3:56 PM

6 Date April-May April 30 May 15 July 20* (Aug. 30) July 25 August 22 (est. not received yet) August September 7, 2014 September 8, 2014 September 11, 2014 Special Meeting 3:00 p.m. September 25, Tax Rate Planning Calendar Houston Community College Activity Mailing of notices of appraised value by chief appraiser. Date: 09/4/2014 The chief appraiser prepares and certifies to the tax assessor for each county, municipality, and school district participating in the appraisal district an estimate of the taxable value. Deadline for submitting appraisal records to ARB. Deadline for ARB to approve appraisal records. Deadline for chief appraiser to certify rolls to taxing units. Certification of anticipated collection rate by collector. Calculation of effective and rollback tax rates. 72-hour notice for meeting (Open Meetings Notice). Publication of effective and rollback tax rates, statement and schedules; submission to governing body. Meeting of governing body to discuss tax rate; if proposed rate tax rate will exceed the rollback rate or the effective tax rate (whichever is lower), take record vote and schedule public hearing. Notice of Public Hearing on Tax Increase is the first quarter-page notice in newspaper and on TV and website, if available, published at least seven days before public hearing. September 29, hour notice for public hearing (Open Meetings Notice) October 2, 2014 Special Meeting 3:30 p.m. October 3, 2014 October 7, 2014 Special Meeting 3:30 p.m. October 9, 2014 October 13, 2014 October 16, :00 p.m. First Public hearing. 72-hour notice for second public hearing (Open Meetings Notice) Second public hearing (may not be earlier than 3 days after first public hearing); schedule and announce meeting to adopt tax rate 3-14 days from this date. Notice of Tax Revenue Increase published before meeting** to adopt tax rate is the second quarter-page notice in newspaper before meeting and published on TV and website (if available, at least seven days before meeting). 72-hour notice for meeting at which governing body will adopt tax rate (Open Meetings Notice) Meeting to adopt tax rate. Meeting is 3 to 14 days after second public hearing. Taxing unit must adopt tax rate by Sept. 30 or 60 days after receiving certified appraisal roll, whichever is later. *Tax Code Section directs that if a date falls on a weekend, the deadline is extended to the following regular business day **Advice of taxing unit legal counsel should be sought to determine which approach to take in notifying the public of the meeting at which the governing body will vote on the tax rate. Source: Texas Comptroller of Public Accounts, 2013.

7 2014 Property Tax Rates in Houston Community College This notice concerns the 2014 property tax rates for Houston Community College. It presents information about three tax rates. Last year's tax rate is the actual tax rate the taxing unit used to determine property taxes last year. This year's effective tax rate would impose the same total taxes as last year if you compare properties taxed in both years. This year's rollback tax rate is the highest tax rate the taxing unit can set before taxpayers start rollback procedures. In each case these rates are found by dividing the total amount of taxes by the tax base (the total value of taxable property) with adjustments as required by state law. The rates are given per $100 of property value. Last year's tax rate: Last year's operating taxes $114,292,815 Last year's debt taxes $29,840,281 Last year's total taxes $144,133,096 Last year's tax base $148,326,279,934 Last year's total tax rate $ /$100 This year's effective tax rate: Last year's adjusted taxes $143,038,958 (after subtracting taxes on lost property) This year's adjusted tax base $157,959,183,755 (after subtracting value of new property) =This year's effective tax rate $ /$100 (Maximum rate unless unit publishes notices and holds hearings.) This year's rollback tax rate: Last year's adjusted operating taxes $113,425,717 (after subtracting taxes on lost property and adjusting for any transferred function, tax increment financing, state criminal justice mandate, and/or enhanced indigent healthcare expenditures) This year's adjusted tax base $157,959,183,755 =This year's effective operating rate $ /$100 x 1.08=this year's maximum operating rate $ /$100 + This year's debt rate $ /$100 = This year's total rollback rate $ /$100 Statement of Increase/Decrease If Houston Community College adopts a 2014 tax rate equal to the effective tax rate of $ per $100 of value, taxes would increase compared to 2013 taxes by $1,325,708. Schedule A - Unencumbered Fund Balance The following estimated balances will be left in the unit's property tax accounts at the end of the fiscal year. These balances are not encumbered by a corresponding debt obligation. Type of Property Tax Fund Balance 0 Schedule B Debt Service The unit plans to pay the following amounts for long-term debts that are secured by property taxes. These amounts will be paid from property tax revenues (or additional sales tax revenues, if applicable). Principal or Contract Description of Debt Payment to be Paid from Property Taxes Limited Tax Refunding Bond, Series 2011 Limited Tax G.O. Bonds, Series 2013 Maintenance Tax Notes, Series 2006 Maintenance Tax Notes, Series 2008 Maintenance Tax Notes, Series 2009 Maintenance Tax Notes, Series 2010 Maintenance Tax Notes, Series 2011 Maintenance Tax Notes, Series 2011A PFC Lease Revenue Bonds, Series 2006 Interest to be Paid from Property Taxes Other Amounts to be Paid Total Payment 5,610,000 4,925, ,535,700 2,130,000 18,863, ,993, , , ,550 2,255,000 1,915, ,170, , , ,241,894 2,010,000 1,972, ,982,600 1,445,000 1,845, ,290, , , ,586, ,235, ,235,573 Total required for 2014 debt service $47,926,025 - Amount (if any) paid from Schedule A $0 - Amount (if any) paid from other resources $0 - Excess collections last year $0 = Total to be paid from taxes in 2014 $47,926,025 + Amount added in anticipation that the unit will collect only % of its taxes in 2014 $0 = Total debt levy $47,926,025 This notice contains a summary of actual effective and rollback tax rates' calculations. You can inspect a copy of the full calculations at 3100 Main St., Houston, TX Name of person preparing this notice: Teri Zamora Title: Vice Chancellor Finance & Planning Date Prepared: 09/04/2014

8 2014 Effective Tax Rate Worksheet Houston Community College Date: 09/04/ :39 PM total taxable value. Enter the amount of 2013 taxable value on the 2013 tax roll today. Include any adjustments since last year's certification; exclude Tax Code Section 25.25(d) one-third over-appraisal corrections from these adjustments. This total includes the $146,563,809,445 taxable value of homesteads with tax ceilings (will deduct in Line 2) and the captured value for tax increment financing (will deduct taxes in Line 14) tax ceilings. Counties, cities and junior college districts. Enter 2013 total taxable value of homesteads with tax ceilings. These include the homesteads of homeowners age 65 $0 or older or disabled. Other taxing units enter 0. If your taxing units adopted the tax ceiling provision in 2013 or a prior year for homeowners age 65 or older or disabled, use this step. 3. Preliminary 2013 adjusted taxable value. Subtract Line 2 from Line 1. $146,563,809, total adopted tax rate. $ /$ taxable value lost because court appeals of ARB decisions reduced 2013 appraised value. A. Original 2013 ARB Values. $7,928,615,343 B values resulting from final court decisions. $7,306,185,937 C value loss. Subtract B from A. $622,429, taxable value, adjusted for court-ordered reductions. Add Line 3 and Line 5C. $147,186,238, taxable value of property in territory the taxing unit deannexed after Jan. 1, Enter the 2013 value of property in deannexed territory taxable value lost because property first qualified for an exemption in Note that lowering the amount or percentage of an existing exemption does not create a new exemption or reduce taxable value. If the taxing unit increased an original exemption, use the difference between the original exempted amount and the increased exempted amount. Do not include value lost to freeport or goods-in-transit exemptions. $0 A. Absolute exemptions. Use 2013 market value: B. Partial exemptions exemption amount or 2014 percentage exemption times 2013 value: C. Value loss. Add A and B taxable value lost because property first qualified for agricultural appraisal (1- d or 1-d-1), timber appraisal, recreational/scenic appraisal or public access airport special appraisal in Use only properties that qualified in 2014 for the first time; do not use properties that qualified in A market value: B productivity or special appraised value: C. Value loss. Subtract B from A. $42,223,367 $136,493,227 $178,716,594 $4,204,230 $10,864 $4,193,366

9 10. Total adjustments for lost value. Add lines 7, 8C and 9C. $182,909, adjusted taxable value. Subtract Line 10 from Line 6. $147,003,328, Adjusted 2013 taxes. Multiply Line 4 by line 11 and divide by $100. $142,847, Taxes refunded for years preceding tax year Enter the amount of taxes refunded by the taxing unit for tax years preceding tax year Types of refunds include court decisions, Tax Code Section 25.25(b) and (c) corrections and Tax Code Section payment errors. Do not include refunds for tax year This line applies only to tax years preceding tax year Taxes in tax increment financing (TIF) for tax year Enter the amount of taxes paid into the tax increment fund for a reinvestment zone as agreed by the taxing unit. If the taxing unit has no 2014 captured appraised value in Line 16D, enter Adjusted 2013 taxes with refunds and TIF adjustment. Add Lines 12 and 13, subtract Line Total 2014 taxable value on the 2014 certified appraisal roll today. This value includes only certified values and includes the total taxable value of homesteads with tax ceilings (will deduct in Line 18). These homesteads include homeowners age 65 or older or disabled. $1,107,813 $916,399 $143,038,958 A. Certified values: B. Counties: Include railroad rolling stock values certified by the Comptroller's office: C. Pollution control exemption: Deduct the value of property exempted for the current tax year for the first time as pollution control property: D. Tax increment financing: Deduct the 2014 captured appraised value of property taxable by a taxing unit in a tax increment financing zone for which the 2014 taxes will be deposited into the tax increment fund. Do not include any new property value that will be included in Line 21 below. E. Total 2014 value. Add A and B, then subtract C and D. $147,231,065,498 $0 $0 $1,380,390,944 $145,850,674, Total value of properties under protest or not included on certified appraisal roll. A taxable value of properties under protest. The chief appraiser certifies a list of properties still under ARB protest. The list shows the appraisal district's value and the taxpayer's claimed value, if any, or an estimate of the value if the taxpayer wins. For each of the properties under protest, use the lowest of these values. Enter the total value. B value of properties not under protest or included on certified appraisal roll. The chief appraiser gives taxing units a list of those taxable properties that the chief appraiser knows about, but are not included in the appraisal roll certification. These properties also are not on the list of properties that are still under protest. On this list of properties, the chief appraiser includes the market value, appraised value and exemptions for the preceding year and a reasonable estimate of the market value, appraised value and exemptions for the current year. Use the lower market, appraised or taxable value (as appropriate). Enter the total value. C. Total value under protest or not certified: Add A and B. $10,288,919,773 $4,492,519,106 $14,781,438,879

10 tax ceilings. Counties, cities and junior colleges enter 2014 total taxable value of homesteads with tax ceilings. These include the homesteads of homeowners age 65 or older $0 or disabled. Other taxing units enter 0. If your taxing units adopted the tax ceiling provision in 2013 or a prior year for homeowners age 65 or older or disabled, use this step total taxable value. Add Lines 16E and 17C. Subtract Line 18. $160,632,113, Total 2014 taxable value of properties in territory annexed after Jan. 1, Include both real and personal property. Enter the 2014 value of property in territory $39,611,757 annexed. 21. Total 2014 taxable value of new improvements and new personal property located in new improvements. New means the item was not on the appraisal roll in An improvement is a building, structure, fixture or fence erected on or affixed to land. New additions to existing improvements may be included if the appraised value can be $2,633,317,921 determined. New personal property in a new improvement must have been brought into the taxing unit after Jan. 1, 2013, and be located in a new improvement. New improvements do include property on which a tax abatement agreement has expired for Total adjustments to the 2014 taxable value. Add Lines 20 and 21. $2,672,929, adjusted taxable value. Subtract Line 22 from Line 19. $157,959,183, effective tax rate. Divide Line 15 by Line 23 and multiply by $100. $ /$ COUNTIES ONLY. Add together the effective tax rates for each type of tax the county levies. The total is the 2014 county effective tax rate. A county, city or hospital district that adopted the additional sales tax in November 2013 or in May 2014 must adjust its effective tax rate. The Additional Sales Tax Rate Worksheet sets out this adjustment. Do not forget to complete the Additional Sales Tax Rate Worksheet if the taxing unit adopted the additional sales tax on these dates.

11 2014 Rollback Tax Rate Worksheet Houston Community College Date: 09/04/ maintenance and operations (M&O) tax rate. $ /$ adjusted taxable value. Enter the amount from Line 11. $147,003,328, M&O taxes. A. Multiply Line 26 by Line 27 and divide by $100. B. Cities, counties and hospital districts with additional sales tax: Amount of additional sales tax collected and spent on M&O expenses in Enter amount from full year's sales tax revenue spent for M&O in 2013 fiscal year, if any. Other taxing units enter 0. Counties exclude any amount that was spent for economic development grants from the amount of sales tax spent. C. Counties: Enter the amount for the state criminal justice mandate. If second or later year, the amount is for increased cost above last year's amount. Other taxing units enter 0. D. Transferring function: If discontinuing all of a department, function or activity and transferring it to another taxing unit by written contract, enter the amount spent by the taxing unit discontinuing the function in the 12 months preceding the month of this calculation. If the taxing unit did not operate this function for this 12-month period, use the amount spent in the last full fiscal year in which the taxing unit operated the function. The taxing unit discontinuing the function will subtract this amount in H below. The taxing unit receiving the function will add this amount in H below. Other taxing units enter 0. E. Taxes refunded for years preceding tax year 2013: Enter the amount of M&O taxes refunded in the preceding year for taxes before that year. Types of refunds include court decisions, Tax Code Section 25.25(b) and (c) corrections and Tax Code Section payment errors. Do not include refunds for tax year This line applies only to tax years preceding tax year F. Enhanced indigent health care expenditures: Enter the increased amount for the current year's enhanced indigent health care expenditures above the preceding tax year's enhanced indigent health care expenditures, less any state assistance. G. Taxes in TIF: Enter the amount of taxes paid into the tax increment fund for a reinvestment zone as agreed by the taxing unit. If the taxing unit has no 2014 captured appraised value in Line 16D, enter 0. $113,273,415 $0 $0 $0 $878,976 $0 $726,674 H. Adjusted M&O Taxes. Add A, B, C, E and F. For unit with D, subtract if discontinuing function and add if receiving function. Subtract G. $113,425, adjusted taxable value. Enter Line 23 from the Effective Tax Rate Worksheet. $157,959,183, effective maintenance and operations rate. Divide Line 28H by Line 29 and multiply by $100. $ /$ rollback maintenance and operation rate. Multiply Line 30 by $ /$100

12 32. Total 2014 debt to be paid with property taxes and additional sales tax revenue. "Debt" means the interest and principal that will be paid on debts that: (1) are paid by property taxes, (2) are secured by property taxes, (3) are scheduled for payment over a period longer than one year and (4) are not classified in the taxing unit's budget as M&O expenses A. Debt also includes contractual payments to other taxing units that have incurred debts on behalf of this taxing unit, if those debts meet the four conditions above. Include only amounts that will be paid from property tax revenue. Do not include appraisal district budget payments. List the debt in Schedule B: Debt Service. B. Subtract unencumbered fund amount used to reduce total debt. $47,926,025 $0 C. Subtract amount paid from other resources. D. Adjusted debt. Subtract B and C from A. $47,926, Certified 2013 excess debt collections. Enter the amount certified by the collector. $0 34. Adjusted 2014 debt. Subtract Line 33 from Line 32D. $47,926, Certified 2014 anticipated collection rate. Enter the rate certified by the collector. If % the rate is 100 percent or greater, enter 100 percent debt adjusted for collections. Divide Line 34 by Line 35 $47,926, total taxable value. Enter the amount on Line 19. $160,632,113, debt tax rate. Divide Line 36 by Line 37 and multiply by $100. $ /$ rollback tax rate. Add Lines 31 and 38. $ /$ COUNTIES ONLY. Add together the rollback tax rates for each type of tax the county levies. The total is the 2014 county rollback tax rate. A taxing unit that adopted the additional sales tax must complete the lines for the Additional Sales Tax Rate. A taxing unit seeking additional rollback protection for pollution control expenses completes the Additional Rollback Protection for Pollution Control. $0

13 ACTION ITEM Meeting Date: September 11, 2014 ITEM NO. ITEM TITLE PRESENTER B Bond Construction Manager-at- Risk Services for Project A & Relocated Project B (Project No. RFP 14-04) Dr. Cesar Maldonado Charles Smith RECOMMENDATION Authorize the Chancellor to negotiate and award a contract to the following firms to perform Construction Manager-at-Risk Services under the 2013 General Obligation Bond (approved in the November 2012 bond referendum) "2013 GO Bond" in accordance with RFP The Chancellor shall only be authorized to execute the contract and guaranteed maximum price amendment with the awarded firm up to the limits of the project budgets. In the event negotiations with the recommended firm are not successful, the Chancellor has the authority to terminate negotiations with such firm and proceed to negotiate with the next ranked firm in accordance with Texas law. The contract term will be through the successful completion of the project, including individual project close-out and warranty period. Project Project A NW Alief Campus Project B NW Eldridge Campus (Relocated to Alief Campus on Hayes Rd.) Recommended Vendor Turner Construction Company Tellepsen Builders, L.P. Original Project Budget Revised Project Budget $10,000,000 $13,700,000 $53,000,000 $49,300,000 Change in Scope Relocation of Project B NW Eldridge Campus to the existing Alief Campus site on Hayes Road. This recommendation includes considerable savings given the removal of site infrastructure work that would be required for the Eldridge site which is estimated at $4 million. The relocation of the proposed building and site improvements planned for the Eldridge site to the Hayes Road location will allow the transfer of required funds to complete the build out of the fourth floor of the Alief Campus. In addition, by leveraging shared resources such as Student Services, Testing and Library on a single campus, HCC will capture additional savings that can be applied to the expansion of the existing parking garage located on the Alief Campus. COMPELLING REASON/RATIONALE The Construction Manager-at-Risk shall be responsible for the construction phase of the Bond project and execution of the contract with this firm is critical and essential to ensure that timelines, legal, tax, and other regulatory obligations are met. The Construction Manager-at-Risk is the general contractor for the project. The Construction Manager-at-Risk team will report to the Chief Facilities Officer and coordinate with the staff of Facilities and Construction Management Department. The selected firm will work 9/9/2014 3:57 PM

14 collaboratively with HCC s representatives and appointed outside parties, which may include, but not limited to the Program Manager, Project Managers and Architects. This recommendation to the Board of Trustees is in accordance with RFP and Chapter 2269 Subchapter F of the Texas Government Code. DESCRIPTION OR BACKGROUND Houston Community College issued a request for proposals to solicit best value proposers for each project described in RFP The Request for Proposal was issued on October 31, The solicitation document was distributed electronically in addition to being published in local newspapers, and notice was provided to 2,984 firms. A total of twenty-five (25) technical proposals including 121 price proposals were received from firms by the solicitation due date of January 7, 2014 at 1:00 pm (local time). In accordance with statutory requirements, the sealed price proposals were opened and read aloud on the solicitation due date. The proposal opening process was held publicly and the figures noted on the sealed price proposal were read. This process was observed by the HCC Office of Internal Audit and Legal Counsel. To maximize the competitive process and allow for transparency and legal compliance, firms were allowed to respond to more than one project with the goal of being awarded either a single project or multiple projects in which the firm represents the best value to HCC in accordance with the published evaluation criteria. Firms seeking multiple awards had to demonstrate sufficient personnel, financial ability, insurance, bonding capacity and qualifications to manage multiple projects. All proposals were deemed responsive to the requirements of the RFP and were submitted to the Evaluation Committee to evaluate and score. FISCAL IMPACT The total fees and costs for Construction Manager-at-Risk Services shall be negotiated prior to contract award. The fees and costs will be funded from the proceeds of the 2013 General Obligation Bond issued. Details regarding the project budget, estimated construction budget and estimated Construction Manager-at-Risk fees and costs for the project are noted in the attached Summary of Procurement. Small Business In accordance with the Houston Community College - Small Business Development Program, for this solicitation, HCC advertised a 35% Good Faith Effort Small Business participation goal. Turner Construction Company proposed a 35-42% Small Business participation commitment. Tellepsen Builders' proposed a 35% Small Business participation commitment. LEGAL REQUIREMENTS This recommendation to the Board of Trustees is in compliance with the Board's Resolution Regarding Procurement with Bond Proceeds (adopted August 16, 2012), and is being made to select the firm offering the best value for HCC based on the published evaluation criteria, as evidenced in the final ranking of the Evaluation Committee, and is in accordance with Chapter 2269 Subchapter F of the Texas Government Code. 9/9/2014 3:57 PM

15 Pursuant to the published RFP document and in accordance with Chapter 2269 Subchapter F of the Texas Government Code, the Evaluation Committee is recommending the proposer that demonstrated the best value based on the published selection criteria and as evidenced in the final evaluation ranking. STRATEGIC GOAL ALIGNMENT Strategic Initiative: Support Innovation Attachment Title(s): 1. Summary of Procurement 2. Composite Score Sheets 3. NW Alief-Hayes Road Site Plan Study 4. Pro Forma (Will be provided under separate cover) This item is applicable to the following: Central Coleman Northeast Northwest Southeast Southwest /9/2014 3:57 PM

16 SUMMARY OF PROCUREMENT BOARD ACTION ITEM PROJECT TITLE: PROJECT NO.: PROCUREMENT METHOD: PROJECT MANAGER: NAME OF BUYER: PURPOSE: Bond Construction Manager-at-Risk Services Project A NW Alief Campus Request for Proposal (Overall Best Value) Charles Smith, P.E., Chief Facilities Officer Kerry Doucette, Procurement Supervisor Houston Community College issued a request for proposal seeking proposals from qualified firms to provide Construction Manager-at-Risk ( CMR ) Services as described in the Scope of Services, and in accordance with the terms, conditions and requirements set forth in the Request for Proposal (RFP 14-04). HCC completed a one-step RFP in accordance with Section 2269 Subchapter F of the Texas Government Code. HCC is recommending award for each project resulting from the Construction Manager-at-Risk Service RFP based on the best value for HCC, in accordance with the published weighted evaluation criteria and as evidenced in the final ranking. The Construction Manager-at-Risk team will report to the Chief Facilities Officer, and work in coordination with the staff of Facilities and Construction Management Department. The selected firm will work collaboratively with HCC s representatives and appointed outside parties, which may include, but not limited to the Program Manager, Project Managers and Architects. RECOMMENDED VENDOR: Turner Construction Company This recommendation to the Board of Trustees is in compliance with the Board's Resolution Regarding Procurement with Bond Proceeds (adopted August 16, 2012), and is being made to select the firm offering the best value for HCC based on the published evaluation criteria, as evidenced in the final ranking of the Evaluation Committee, and is in accordance with Chapter 2269 Subchapter F of the Texas Government Code. Pursuant to the published RFP document and in accordance with Chapter 2269 Subchapter F of the Texas Government Code, the Evaluation Committee is recommending the proposer that demonstrated the best value based on the published selection criteria and as evidenced in the final evaluation ranking.

17 PROPOSED SUB-CONTRACTOR: BUY TEXAS: PROJECTED VALUE: The recommended prime contractor noted above, has proposed to meet or exceed HCC s Small Business Enterprise goal and shall be required to make their selection of subcontractors in accordance with the statutory procedures required for the selection of subcontractors under the Construction Managerat-Risk delivery method. Location is not a permissible factor in the evaluation of construction services under Chapter 2269 of the Texas Government Code. The total fees and costs for Construction Manager-at-Risk Services shall be negotiated prior to contract award. The following table includes the project budget and estimated fees. Project Project budget Estimated construction value Estimated total fees and costs paid to CM-at-Risk A NW Alief Campus $13,700,000 $10,300,000 $1,057,410 Note: Project budget consists of the totals allocated for land costs (if applicable), soft costs (professional fees) and construction costs. CONTRACT TERM: ADVERTISEMENT: The contract term will be through the successful completion of the project, including individual project close-out and warranty periods covered under the 2013 GO Bond that was approved in the November 2012 Bond Referendum. This procurement was advertised in the following newspapers: The Houston Chronicle: November 1, 10, 17 and December 1, 2013 African American News: November 4 and 10, 2013 La Informacion: November 7 and 13, 2013 Voice of Asia: November 8, 2013 Community Outreach: October 31, 2013 PROCUREMENT NOTICE: A notice of the procurement was distributed to the following on. Notice to HCC Board of Trustees on November 4, 2013 Texas State Procurement Website on October 31, 2013 HCC Procurement Operations Website November 4, 2013 SOLICITATION INFORMATION: Houston Community College issued a request for proposals to solicit best value proposers for each project described in RFP The Request for Proposal was issued on October 31, The solicitation document was distributed electronically in addition to being published in local newspapers, and notice was provided to 2,984 firms. A total of twentyfive (25) technical proposals including 121 price proposals were received from firms by the solicitation due date of January 7, 2014 at 1:00 pm (local time).

18 In accordance with statutory requirements, the sealed price proposals were opened and read aloud on the solicitation due date. The proposal opening process was held publicly and the figures noted on the sealed price proposal were read. This process was observed by the HCC Office of Internal Audit and Legal Counsel. To maximize the competitive process and allow for transparency and legal compliance, firms were allowed to respond to more than one project with the goal of being awarded either a single project or multiple projects in which the firm represents the best value to HCC in accordance with the published evaluation criteria. Firms seeking multiple awards had to demonstrate sufficient personnel, financial ability, insurance, bonding capacity and qualifications to manage multiple projects. All proposals were deemed responsive to the requirements of the RFP and were submitted to the Evaluation Committee to evaluate and score. COMPETITIVE: PROPOSAL EVALUATION: Yes, see Composite Score Sheet. Proposals were evaluated by the Evaluation Committee, which consisted of representatives with relevant subject matter understanding who scored proposals in accordance with the published evaluation criteria noted below. Evaluation Criteria Available Points Firm s demonstrated qualifications and project experience 10 Demonstrated qualifications of Personnel and team 10 Construction management expertise 20 Past performance references 10 Safety plan 5 Small Business Commitment & Practices 10 Business Relationship Strength 5 Firm s Financial Status 5 Sealed price proposal form 25 Total 100 PRIOR HCC EXPERIENCE: REFERENCES: No Evaluated and found to be favorable.

19 SMALL BUSINESS GOAL: In accordance with the Houston Community College - Small Business Development Program, for this solicitation, HCC advertised a 35% Good Faith Effort Small Business participation goal. Turner Construction Company proposed a 35-42% Small Business participation commitment.

20 Bond Construction Manager at Risk Services (Project No. RFP 14-04) Composite Score Sheet Project A NW Alief Campus Firm Total Score Turner Construction Company Jamail & Smith Construction, LP Teal Construction Company Tribble & Stephens Construction, Ltd B3Ci, A Joint Venture Skanska USA Building, Inc The Trevino Group Diggs Construction, LLC DivisionOne Construction NOTE: This recommendation to the Board of Trustees, is in compliance with the Board's Resolution Regarding Procurement with Bond Proceeds (adopted August 16, 2012), and is being made to the firm offering the best value for HCC based on the published evaluation criteria, as evidenced in the final ranking of the Evaluation Committee, and is in accordance with Chapter 2269 Subchapter F of the Texas Government Code.

21 SUMMARY OF PROCUREMENT BOARD ACTION ITEM PROJECT TITLE: PROJECT NO.: PROCUREMENT METHOD: PROJECT MANAGER: NAME OF BUYER: PURPOSE: Bond Construction Manager-at-Risk Services Project B NW Eldridge (Westside) Campus Request for Proposal (Overall Best Value) Charles Smith, P.E., Chief Facilities Officer Kerry Doucette, Procurement Supervisor Houston Community College issued a request for proposal seeking proposals from qualified firms to provide Construction Manager-at-Risk ( CMR ) Services as described in the Scope of Services, and in accordance with the terms, conditions and requirements set forth in the Request for Proposal (RFP 14-04). HCC completed a one-step RFP in accordance with Section 2269 Subchapter F of the Texas Government Code. HCC is recommending award for each project resulting from the Construction Manager-at-Risk Service RFP based on the best value for HCC, in accordance with the published weighted evaluation criteria and as evidenced in the final ranking. The Construction Manager-at-Risk team will report to the Chief Facilities Officer, and work in coordination with the staff of Facilities and Construction Management Department. The selected firm will work collaboratively with HCC s representatives and appointed outside parties, which may include, but not limited to the Program Manager, Project Managers and Architects. RECOMMENDED VENDOR: Tellepsen Builders, L.P. This recommendation to the Board of Trustees is in compliance with the Board's Resolution Regarding Procurement with Bond Proceeds (adopted August 16, 2012), and is being made to select the firm offering the best value for HCC based on the published evaluation criteria, as evidenced in the final ranking of the Evaluation Committee, and is in accordance with Chapter 2269 Subchapter F of the Texas Government Code. Pursuant to the published RFP document and in accordance with Chapter 2269 Subchapter F of the Texas Government Code, the Evaluation Committee is recommending the proposer that demonstrated the best value based on the published selection criteria and as evidenced in the final evaluation ranking.

22 PROPOSED SUB-CONTRACTOR: BUY TEXAS: PROJECTED VALUE: The recommended prime contractor noted above, has proposed to meet or exceed HCC s Small Business Enterprise goal and shall be required to make their selection of subcontractors in accordance with the statutory procedures required for the selection of subcontractors under the Construction Managerat-Risk delivery method. Location is not a permissible factor in the evaluation of construction services under Chapter 2269 of the Texas Government Code. The total fees and costs for Construction Manager-at-Risk Services shall be negotiated prior to contract award. The following table includes the project budget and estimated fees. Project Project budget Estimated construction value Estimated total fees and costs paid to CM-at-Risk B NW Eldridge (Westside) Campus $49,300,000 $33,400,000 $3,109,420 Note: Project budget consists of the totals allocated for land costs (if applicable), soft costs (professional fees) and construction costs. CONTRACT TERM: ADVERTISEMENT: The contract term will be through the successful completion of the project, including individual project close-out and warranty periods covered under the 2013 GO Bond that was approved in the November 2012 Bond Referendum. This procurement was advertised in the following newspapers: The Houston Chronicle: November 1, 10, 17 and December 1, 2013 African American News: November 4 and 10, 2013 La Informacion: November 7 and 13, 2013 Voice of Asia: November 8, 2013 Community Outreach: October 31, 2013 PROCUREMENT NOTICE: A notice of the procurement was distributed to the following on. Notice to HCC Board of Trustees on November 4, 2013 Texas State Procurement Website on October 31, 2013 HCC Procurement Operations Website November 4, 2013 SOLICITATION INFORMATION: Houston Community College issued a request for proposals to solicit best value proposers for each project described in RFP The Request for Proposal was issued on October 31, The solicitation document was distributed electronically in addition to being published in local newspapers, and notice was provided to 2,984 firms. A total of twentyfive (25) technical proposals including 121 price proposals were received from firms by the solicitation due date of January 7, 2014 at 1:00 pm (local time).

23 In accordance with statutory requirements, the sealed price proposals were opened and read aloud on the solicitation due date. The proposal opening process was held publicly and the figures noted on the sealed price proposal were read. This process was observed by the HCC Office of Internal Audit and Legal Counsel. To maximize the competitive process and allow for transparency and legal compliance, firms were allowed to respond to more than one project with the goal of being awarded either a single project or multiple projects in which the firm represents the best value to HCC in accordance with the published evaluation criteria. Firms seeking multiple awards had to demonstrate sufficient personnel, financial ability, insurance, bonding capacity and qualifications to manage multiple projects. All proposals were deemed responsive to the requirements of the RFP and were submitted to the Evaluation Committee to evaluate and score. COMPETITIVE: PROPOSAL EVALUATION: Yes, see Composite Score Sheet. Proposals were evaluated by the Evaluation Committee, which consisted of representatives with relevant subject matter understanding who scored proposals in accordance with the published evaluation criteria noted below. Evaluation Criteria Available Points Firm s demonstrated qualifications and project experience 10 Demonstrated qualifications of Personnel and team 10 Construction management expertise 20 Past performance references 10 Safety plan 5 Small Business Commitment & Practices 10 Business Relationship Strength 5 Firm s Financial Status 5 Sealed price proposal form 25 Total 100 PRIOR HCC EXPERIENCE: REFERENCES: Yes Evaluated and found to be favorable.

24 SMALL BUSINESS GOAL: In accordance with the Houston Community College - Small Business Development Program, for this solicitation, HCC advertised a 35% Good Faith Effort Small Business participation goal. Tellepsen Builders proposed a 35% Small Business participation commitment.

25 Bond Construction Manager at Risk Services (Project No. RFP 14-04) Composite Score Sheet Project B NW Eldridge (Westside) Campus Firm Total Score Tellepsen Builders, L.P Durotech, Inc KBR Building Group, LLC Manhattan Construction Company Turner Construction Company Clark/Horizon, A Joint Venture Skanska USA Building, Inc Tribble & Stephens Construction, Ltd McCarthy Building Companies, Inc Satterfield & Pontikes Construction, Inc Drymalla/Glennlock Joint Venture SRS - BLHI Joint Venture B3Ci, A Joint Venture Gamma Construction Allco Jordan Foster Construction, LLC DivisionOne Construction NOTE: This recommendation to the Board of Trustees, is in compliance with the Board's Resolution Regarding Procurement with Bond Proceeds (adopted August 16, 2012), and is being made to the firm offering the best value for HCC based on the published evaluation criteria, as evidenced in the final ranking of the Evaluation Committee, and is in accordance with Chapter 2269 Subchapter F of the Texas Government Code.

26

27 ACTION ITEM Meeting Date: September 11, 2014 ITEM NO. ITEM TITLE PRESENTER C Bond Construction Manager-at- Risk Services for Project N Coleman Campus (Project No. RFP 14-04) Dr. Cesar Maldonado Charles Smith RECOMMENDATION Authorize the Chancellor to negotiate and award a contract to Tellepsen Builders, L.P., to perform Construction Manager-at-Risk Services under the 2013 General Obligation Bond (approved in the November 2012 bond referendum) "2013 GO Bond" in accordance with RFP The Chancellor shall only be authorized to execute the contract and guaranteed maximum price amendment with the awarded firm up to the limits of the project budgets. In the event negotiations with the recommended firm are not successful, the Chancellor has the authority to terminate negotiations with such firm and proceed to negotiate with the next ranked firm in accordance with Texas law. The contract term will be through the successful completion of the project, including individual project close-out and warranty period. COMPELLING REASON/RATIONALE The Construction Manager-at-Risk shall be responsible for the construction phase of the Bond project and execution of the contract with this firm is critical and essential to ensure that timelines, legal, tax, and other regulatory obligations are met. The Construction Manager-at-Risk is the general contractor for the project. The Construction Manager-at-Risk team will report to the Chief Facilities Officer and coordinate with the staff of Facilities and Construction Management Department. The selected firm will work collaboratively with HCC s representatives and appointed outside parties, which may include, but not limited to the Program Manager, Project Managers and Architects. This recommendation to the Board of Trustees is in accordance with RFP and Chapter 2269 Subchapter F of the Texas Government Code. DESCRIPTION OR BACKGROUND Houston Community College issued a request for proposals to solicit best value proposers for each project described in RFP The Request for Proposal was issued on October 31, The solicitation document was distributed electronically in addition to being published in local newspapers, and notice was provided to 2,984 firms. A total of twenty-five (25) technical proposals including 121 price proposals were received from firms by the solicitation due date of January 7, 2014 at 1:00 pm (local time). In accordance with statutory requirements, the sealed price proposals were opened and read aloud on the solicitation due date. The proposal opening process was held publicly and the figures noted on the sealed price proposal were read. This process was observed by the HCC Office of Internal Audit and Legal Counsel. 9/9/2014 3:57 PM