Minutes 04/28/2009

MARICOPA COUNTY COMMUNITY COLLEGE DISTRICT
GOVERNING BOARD
APRIL 28, 2009
MINUTES

An executive session and regular meeting of the Maricopa County Community College District Governing Board was scheduled to be held at 5:30 p.m. at the District Support Services Center, 2411 West 14th Street, Tempe, Arizona, pursuant to A.R.S. §38-431.02, notice having been duly given.

PRESENT

GOVERNING BOARD
Colleen Clark, President
Randolph Lumm, Secretary
Debra Pearson, Member
Don Campbell, Member
Jerry Walker, Member

ADMINISTRATION
Rufus Glasper
Maria Harper-Marinick
Debra Thompson
Darrel Huish
Steve Helfgot
Judy Castellanos for Al Crusoe
Anna Solley
Pete Kushibab
Paul Dale
Shouan Pan
Ken Atwater
Ernie Lara
Gene Giovannini
Linda Thor
Maria Hesse
Jan Gehler
Velvie Green

EXECUTIVE SESSION
The executive session was called to order by President Clark at 5:00 p.m.

PLEDGE OF ALLEGIANCE
The assembly pledged their allegiance to the United States of America led by Governing Board Member Don Campbell.

SUBSTITUTE ANNOUNCEMENTS, AND CLASS ACKNOWLEDGEMENTS
There was one substitute present and no classes present.

CITIZEN'S INTERIM
Ms. Rosemary Hernandez, representing the Aguila Program, came forward at the request of Governing Board Members Randolph Lumm. She presented information on their program which strives to prepare Latino/Latina youth for college. The following information was presented:

Mission Statement
To empower and prepare Latino/Latina youth for college admissions and graduation through a unique approach based upon a greater cultural understanding as a guide to personal, academic and professional excellence as future Latino/a Leaders.

Program Goals
Increase Latino/Latina admission and graduation rates in post secondary education.

Provide experiences that contribute to a strong sense of self; a strong connection to cultural heritage; and a commitment to positive and ethical leadership.

Overview
AGUILA Youth Leadership Institute (AGUILA) is a unique college access program for Latino/a youth that helps to build a web of support through consistency and powerful messaging. Students begin AGUILA as Juniors in a cohort attending monthly seminars focusing on personal growth, leadership and college preparation for continuation into AGUILA’s intense Senior Program. Seniors continue to meet once a month focusing on college admissions and funding as well as participation in activities that promote cultural heritage, academic success, civic engagement, leadership, positive self-esteem and healthy relationships. Seniors are honored at a special celebration in May of each year, marking their rite of passage from high school to college in the AGUILA Honors Convocation. AGUILA then provides follow-up and continued support for students through our Alumni Association.

The goal of AGUILA is to create on-going programming for all levels in high school in the near future. However due to an increasing demand to participate AGUILA currently offers Sophomores and Freshmen an opportunity to participate in our Summer Symposium, “Planting Seeds for Success”, an intensive orientation to the AGUILA program and college preparation. At each level, AGUILA participants are exposed to many Latino Leaders, Educators resources, programs and organizations that provide the web of support required to ensure their success. Included as partners in their program are Phoenix College, the ACE Program, GWECHS, and CGCC ACE.

Topic: Termination of SCC Volleyball Coach Regina Mannix
Leilani Ili, Rayla Doty, Brian Mannix, , Gregg Schroeder, Steve Crook, Hailey Thompson, Lori Flake

The aforementioned individuals came forward to speak on behalf of Regina Mannix, a Volleyball Coach at Scottsdale Community College, whose name was listed as a termination. They spoke about her character, accomplishments, and dedication to students, and requested that the Board not approve this termination and allow additional time for the action be reconsidered, as in their opinion the action was unjust, unfounded, and undeserved.

Louanna Fame
Ms. Fame came forward to speak on her on behalf regarding her graduation status at Mesa Community College. Ms. Fame indicated that she maintained a 3.79 GPA during her attendance at MCC, however because her previous GPA of 2.69 while attending another out of state community college had to be considered in her overall graduation grade point average, she would not be graduating with Honors as had been her goal. She requested that the Governing Board allow her to graduate with Honors due to the special circumstances.

Christine Hall
Dr. Hall came forward as a District Grade 21 employee to speak on Action Item V.B.5, Servant Leadership – Compensation Reductions for Reallocation. She urged the Board to table this item as no urgency existed due to a budget crisis. She referenced exempt employees who already work 10-12 hours or more and if these employees’ salaries were prorated, they would be making far less than the posted salary. Maricopa employees are also generous people. Many of the higher paid MAT employees had offered to take temporary salary cuts or take furloughs to save less-paid employees from being laid off. However, this proposal being brought forward for permanent salary reductions is not being made due to budget crisis issues and it is not sure why it is being made. The item is not on the consent agenda and the assumption is that perhaps not all Board members are in favor of the proposal. MAT employees are afraid of coming forward due to possible retaliation, and in her case she only has two years left and is not afraid. A lower salary would result in a lower ASRS calculation for a group of employees who have dedicated their lives to enabling all students to make better lives for themselves. (Copy of remarks are included with these minutes.)

Danielle Lyman
Ms. Lyman stated she was a film school student at SCC and urged the Governing Board to approve the fee increase for the film school program. She commented that she personally has produced seven films which will help her portfolio. She understood that fees help purchase equipment; however, increased fees make attending schools more difficult.

BOARD MEMBER REPORTS
Governing Board Member Debra Pearson expressed gratitude for cards and flowers sent to her on the recent loss of her grandmother. She expressed appreciation to President Solley for the opportunity to meet with the Phoenix College leadership team. The conversation held was very enlightening and she congratulated Dr. Solley for the yeoman’s task she performed. She also expressed appreciation to President Atwater for the program he recently invited her to. She stated that her experiences with the District have been enlightening and she appreciated all who have reached their arms out to her. Lastly, she expressed appreciation to Chancellor Glasper for his assistance and patience.

Governing Board Member Dr. Don Campbell announced that South Mountain Community College had recently been visited by the Higher Learning Commission and had extended a ten-year accreditation approval to them.

CHANCELLOR'S REPORT
Chancellor Glasper approached the podium to acknowledge the President Emeritus Distinction of Retired Scottsdale Community College President Dr. Art DeCabooter. Dr. DeCabooter was present to receive this honor and remarked that he was grateful for this award and looked forward to working with the District in raising funds for student scholarships.

Chancellor Glasper introduced Nicola Perry who proceeded with update on the Maricopa Wellness Initiative. The “Year in Review” included:
• Nine Wellness Fairs
• Health Screenings for blood pressure, mammograms, glucose, cholesterol, skin cancer
• 13 Health Risk Assessments for 796 participants
• Fitness Center usage
• The Maricopa 5K participation
• A report on Maricopa’s Disease Management
• Statistics on Maricopa’s Wellness Insurance Claims by age category
• Future recommendations on identifying and reducing high risk behaviors, collection of health data, and helping employees make healthier choices

SECRETARY'S REPORT
There was no report.

FACULTY REPORT
Faculty Executive Council President Barry Vaughan made the following statement pertaining to the proposed action Servant Leadership – Compensation Reductions for Reallocation. His remarks were as follows:

“Madam President, Mr. Secretary, members of the board, Mr. Chancellor.

On behalf of the Faculty Association I would like to take this opportunity to address the proposed action item V.B.5 on your agenda this evening.

The Faculty Association believes that it is important that we continually examine our operations and expenditures to make sure we are providing the highest quality service to the public that has entrusted us with the mission of delivering high quality post-secondary education at an affordable price. It is reasonable for us to engage in a continuous self-examination to make sure we are doing our best as public servants.

However, we believe the current action item is being considered precipitously, and should be delayed for further scrutiny. First, the state legislature today released the draft budgets from the House and Senate, but it is clear that these are inconsistent drafts that will require reconciliation before a final budget can be adopted. In short, we do not yet know what if any specific cuts may be required of community colleges for the next fiscal year.

Second, the board has engaged in a process to identify an external agent to perform an operational audit of the District. Prudence would suggest waiting for the outcome of the audit before undertaking all the actions considered in item V.B.5. The audit may very well provide insight into efficiencies that would relegate the need for salary reeducation.

Third, each employee group has an established process by which issues of working conditions and compensation are considered. The action the board will be considering is outside the established process for determining compensation and working rights issues and would undermine the integrity of future Collaborative Policy Development meetings.

Finally, we must be mindful of the psychological impact that a permanent salary reduction will have, on the entire institution. Obviously the morale of those directly affected by a salary reduction will be diminished. But this action is also likely to generate a general impact on morale. Inevitably, all employees will ask themselves, “who’s next on the list?” This can create a morass of fear and depression, though certainly unintended, throughout our entire enterprise.

Therefore, on behalf of our colleagues in management and administration, we would respectfully ask that you consider tabling this item, for a time, for further reflection and refinement. While a salary reduction may ultimately prove necessary, it should only be undertaken after most careful scrutiny and consideration of its likely effects.

Thank you for your consideration.”

EMPLOYEE GROUP REPORTS
Kerry Mitchell came forward on behalf of the Management, Administration, and Technology Employee Group. Mr. Mitchell asked that members of the MAT group who were present to please stand and acknowledge their presence. On behalf of the MAT employee group, he requested that item V.B.5, Servant Leadership – Compensation Reductions for Reallocation, be tabled for further discussion and be discussed openly before this action is approved. Postings one day before these transactions do not allow for open dialogue. He thanked the Board for allowing him the opportunity to come forward to express the requested action of employees.

VICE CHANCELLOR REPORTS
Vice Chancellor of Academic and Student Affairs, Dr. Maria Harper-Marinick, introduced Dr. Judy Crume, District Administrator of the Maricopa Community College Nursing Program. Dr. Crume highlighted the following points:

o The mission of the Maricopa Community College District Nursing Program is to provide a comprehensive educational foundation that prepares our graduates to function successfully as entry level nurses. Some of the outcomes we use as indicators that we are advancing our mission and demonstrating success in nursing education at Maricopa are to measure enrollments, attrition from the program, graduations and NCLEX-RN (National Council Licensing Examination for Registered Nurses) pass rates. Passing the NCLEX as 1st time takers is the achievement that allows our students to be licensed in Arizona and be employed within our communities in healthcare organizations as licensed professional registered nurses.

o Maricopa Nursing is an Associate in Applied Science degree program that is administered at nine colleges within the Maricopa system and at 10 sites with our partners at Banner Health and JC Lincoln Health Network. There are other derivations of nursing education at other sites in the district – Certified Nursing Assistant, Practical Nursing Education and Bilingual Nursing Programs are also available. Tonight, I am strictly speaking about the Associate Degree RN Program. It is a nationally accredited and Arizona Board of Nursing approved program. The April 13, 2009 issue of Modern Healthcare lists Maricopa Nursing as the 3rd largest nursing school in the country using the 2007-08 enrollment data. We currently have an enrollment of 2181 students and we anticipate having about 475 nursing graduates throughout the district on May 15, 2009.

o MaricopaNursing was accredited as one program in 2001. Over the past decade the enrollments have grown from 208 students to our Spring enrollment in Blocks 1-4 of 2181. We have been able to increase capacity and meet community demand because of an increased commitment of the college presidents to place nursing education as a priority at the campus sites. Mesa Community College; Phoenix College; Glendale and Scottsdale were the core colleges that have had nursing programs for many years. Phoenix College is celebrating 50 years this year. In the last decade we have added nursing education at Rio Salado; Paradise Valley/JC Lincoln; Chandler-Gilbert and the newest site, Estrella Mountain admitted students in the fall of 2006.

o Since accreditation in 2001 our data indicates that our attrition rate for losing students has trended downward, this means that we are retaining more students. Our attrition is monitored through our district-wide Student Nurse Tracking System (NST) and there are a variety of reasons that some students may not complete the program including being withdrawn for academic reasons or life circumstances. However, we do continue to consistently achieve attrition rates markedly better than reported national average of about 25%.

o Earlier I told you that we project that there will be about 475 district-wide nursing students graduating this semester. We have consistently, for the past 2 years graduated 400 students per semester with an aggregate total of over 800 graduates each year.

o Perhaps the most positive indicator of student success in nursing education is the pass rate on the National Licensing Exam. Report of students passing NCLEX come in a variety of ways. The student calls us screaming through the phone the sounds that only celebration and success brings, the student, spouse and children, or parent sends a note thanking the faculty for a job well done. Or…one of our campuses has a specific bell that the student comes to the campus and signifies their rite of passage and passing the “state boards” by ringing the bell. Obviously, there is great celebration and we too celebrate with a current overall 1st time takers pass rate of 94%. Maricopa has consisted been higher than the national mean on NCLEX pass rates.

o Predominant factors that we believe create a culture of learning within nursing education at our campuses are:

o A talented team of nursing faculty;

o teaching and learning methodologies that include f2f, web-enhanced, hybrid or blended, and online delivery;

o simulation which includes all levels of fidelity;

o system support of placement; clinical coordination; and outcomes monitoring; and

o college commitment to nursing education.

Vice Chancellor of Resource Development & Community Relations Dr. Steve Helfgot reported on this year’s Heroes of Education Dinner, held earlier this month, which raised about $160,000 for Maricopa scholarships. He said that in the years since the Maricopa Community Colleges Foundation began holding the dinners, more than one-half million dollars has been raised for scholarships.

COLLEGE REPORTS

The following reports were made:

Mesa Community College President Dr. Shouan Pan acknowledged the recommendation of Faculty Emeritus Distinction to Dr. James B. Mancuso which was on the agenda this evening. At the time of his retirement was Dr. Mancuso was MCC’s Acting Vice President of Academic Affairs. Professor Mancuso was a member of the MCC Speech and Theater Department. Dr. Pan also introduced Duane Oaks, MCC’s Director of Center for Service Learning. Lea Laffartha, president of the Mesa Community College's chapter of Phi Theta Kappa, the national community college honor society and several of its members were recognized for their activities and achievements. The Board also recognized Eric W. Thompson, named to this year's All-USA Team and was named a Guistwhite Scholar by Phi Theta Kappa and Nedd Anderson was named to the Coca-Cola All-State Academic Team as a Gold Scholar. In addition to Ms. Laffartha and Thompson, other students attending the Board meeting were Stephanie Nyman, Monica Pirshafiey, Levi Randolph-Roble, Michele Van Paris and Julia Kerran.

Glendale Community College President Dr. Velvie Green announced that each year the league for Innovation in the Community College and the K. Patricia Cross Endowment names a scholar/practitioner of community college teaching and learning as The Cross Papers Fellow. Since the release of the inaugural issue of the Cross Papers in 1997, community college educators have used these monographs as tools for stimulating discussion, providing orientation and training to new faculty and staff, for rejuvenating veteran employees, and for designing successful practices and strategies for reaching the diverse groups of students who come through the open doors of community colleges every day. GCC Faculty Member Dr. Carol Jenkins was selected as the 2008 Cross Paper Fellow. The title of her monograph is “Academic Integrity in a Multicultural Context: Implications for Teaching and Learning.” Dr. Jenkins analyzes the complex issue of academic honesty, focusing especially on plagiarism and providing faculty with knowledge and strategies for confronting plagiarism as both an academic and sociocultural phenomenon.

AADGB REPORT
Governing Board Member Jerry Walker, AADGB Representative, reported that a telephonic conference had been held to discuss the agenda for a future meeting.

LEGISLATIVE UPDATE
Chancellor Glasper requested that Bernie Ronan, Associate Vice Chancellor for Public Affairs, come forward to provide information on the Stimulus Response for the Maricopa Community College District. Mr. Ronan told the Board that the district has prepared an extensive plan to seek federal economic stimulus money in order to train workers in a variety of fields and help Arizona's economy recover. He said that the district's efforts are focused in four areas: Workforce Development, Student Affairs, Health Care Education, and Nursing and Teacher Education. He said the district also is monitoring the flow of fiscal stabilization funds into Arizona. The district is primed to apply for a share of those funds, to help stabilize its budget in light of cuts in state funding, once the money is available.

AWARDS AND RECOGNITIONS
Carlos Galindo-Elvira, representing Valley del Sol, a prominent Phoenix-based non-profit organization, announced that Chancellor Rufus Glasper had been given the Valle Del Sol Peacemaker Award in honor of his work to promote the community.

In addition, CGCC Vice President Bill Crawford, reported that the National Council on Black American Affairs had given Chancellor Glasper the James Bennett NCBAA Leadership Award at its annual conference on April 5. .

APPROVAL OF THE AGENDA
President Clark requested a motion to approve the agenda. Mrs. Pearson requested the removal of name of Regina Mannix from Item V.C.4 for further consideration. Mr. Lumm requested that Items V.E.7 and V.E.8 be tabled. Mr. Walker requested the removal of V.B.4 for further discussion due to possible conflict of interest. The removal of V.B.4 was declined 4-1 as it was determined no conflict of interest existed with Mr. DeConcini being associated with the Arizona Board Regents and also a member of the firm being considered for approval.

MOTION NO. 9550
Agenda approved 5-0.

APPROVAL OF THE CONSENT AGENDA
President Clark requested approval of the Consent Agenda with the exception of the removal of the name of Regina Mannix from Item V.C.4, and the tabling of Items V.E.7and V.E.8

The following items were included on the Consent Agenda:

A.1 APPROVAL OF THE MARCH 10, 2009 SPECIAL GOVERNING BOARD STUDY SESSION AND THE MARCH 24, 2009 REGULAR GOVERNING BOARD MEETING

B.3. APPROVAL OF FACULTY EMERITUS DISTINCTION – MESA COMMUNITY COLLEGE - award Faculty Emeritus Distinction to Mr. James B. Mancuso.

B.4. APPROVAL TO CONTRACT FOR FEDERAL REPRESENTATION SERVICES - approve the use of the firm of Parry, Romani, DeConcini & Symms for the provision of Federal Representation Services for the District anticipated not to exceed $140,000 through June 30, 2010.

C.1. CONSIDERATION OF EMPLOYMENTS - approve the following personnel actions as proposed. Budget approvals have been granted and are on file for the recommended personnel actions in this item.

C.2. CONSIDERATION OF SPECIALLY FUNDED EMPLOYMENTS - approve the following personnel actions as proposed. Budget approvals have been granted and are on file for the recommended personnel actions in this item.

C.3. CONSIDERATION OF SHORT TERM EMPLOYMENTS - approve the following personnel actions as proposed. Budget approvals have been granted and are on file for the recommended personnel actions in this item.

C.4. CONSIDERATION OF SEPARATIONS - approve the following personnel actions as proposed. Budget approvals have been granted and are on file for the recommended personnel actions in this item. (Note: The name of Regina Mannix was removed from this item.)

D.1. APPROVAL OF CURRICULUM PROGRAM AND COURSE PROPOSALS - that the proposals be approved as submitted.

D.2. APPROVAL OF GENERAL MOTORS TRAINING CENTER – GLENDALE COMMUNITY COLLEGE - approve a two-year, nine-month extension of the Raytheon contract agreement in the amount of $609,349 to provide technical training and assessment for General Motors dealership automotive technicians throughout the state. This extension pertains to the facilities and two corporate trainers at Glendale Community College. This contract agreement is between Raytheon Professional Services, on behalf of General Motors Corporation and the Maricopa Community College District through THE INSTITUTE for Business, Industry and Technology at Glendale Community College. The contract period will be from April 1, 2009 – December 31, 2011.

D.3. APPROVAL OF ACHIEVING TECHNOLOGICAL LITERACY FOR ARIZONA’S STUDENTS AND TEACHERS (AT LAST) GRANT PROJECT – accept an award for year two of a three year grant from the National Science Foundation in the amount of $290,275 to the National Center for Teacher Education for the Achieving Technological Literacy for Arizona’s Students and Teachers (AT LAST) Grant Project. Year two project funding will be available from 5/1/09 to 4/30/10.

D.4. APPROVAL OF TEACHER PREPARATION CHARTER HIGH SCHOOL 2009-2010 SCHOOL CALENDAR - approve the Teacher Preparation Charter High School calendar for the 2009-2010 school year. The 181 day school calendar fulfills requirements as designated by the Arizona Department of Education, and is aligned with the holiday and break schedule established by the District.

D.5. APPROVAL OF U.S. SMALL BUSINESS ADMINISTRATION AWARD FOR ARIZONA SMALL BUSINESS DEVELOPMENT CENTER NETWORK - approve acceptance of a negotiated contract in the amount of $1,573,633 from the U.S. Small Business Administration to the Maricopa Community Colleges for the Arizona Small Business Development Center Network for the period of January 1, 2009 – December 31, 2009.

E.2. APPROVAL OF GATEWAY EARLY COLLEGE HIGH SCHOOL, SUBMISSION OF PRELIMINARY BUDGET REVISION TO THE ARIZONA DEPARTMENT OF EDUCATION - approve the 2008-2009 GateWay Early College High School (GWECHS) adopted budget revision for submission to the Arizona Department of Education.

E.4. APPROVAL OF CONTRACT AWARD FOR LANDSCAPING AT SCOTTSDALE COMMUNITY COLLEGE - award the contract for landscaping at Scottsdale Community College to: Gothic Landscape
for $133,538.00 for landscaping in parking areas and loop road around the campus.

E.5. APPROVAL OF WATER & SEWER LINE EASEMENT AND FEES FOR NEW MARIPOSA HALL AND SOUTHWEST SKILL CENTER REMODELING AT ESTRELLA MOUNTAIN COMMUNITY COLLEGE- approve an easement for the extension of the public water main for Mariposa Hall at Estrella Mountain Community College, and for payment of municipal water and sewer development fees to Litchfield Park Service Co (LPSCO) in an amount not to exceed One Hundred Sixty Thousand ($160,000).

E.6. APPROVAL OF CONTRACT AWARD FOR BU BUILDING RENOVATION AT SCOTTSDALE COMMUNITY COLLEGE - approve awarding a contract in the amount of One Million Five Hundred Sixty-nine Thousand Four Hundred Twenty-seven and no/100ths Dollars ($1,569,427.00) to SDB, Inc. for renovations to the BU Building at Scottsdale Community College.

E.7. APPROVAL OF CMAR SELECTION AND GMP AWARD FOR REMODELING THE NEW DATA CETNER AND DISASTER RECOVERY FACILITY - Tabled

E.8. APPROVAL OF BOOKSTORE CONTRACT MANAGEMENT SERVICES - Tabled

E.9. APPROVAL OF TEACHER PREPARATION CHARTER HIGH SCHOOL, SUBMISSION OF PRELIMINARY BUDGET REVISION TO THE ARIZONA DEPARTMENT OF EDUCATION - approve the 2008-2009 Teacher Preparation Charter High School (TPCHS) adopted budget revision for submission to the Arizona Department of Education.

MOTION NO. 9551
Dr. Campbell moved to approve the Consent Agenda with the exception of the removal of name of Regina Mannix from Item V.C.4 for further consideration and the tabling of Items V.E.7 and V.E.8 Consent Agenda approved 5-0.

B.1. APPROVAL OF MARICOPA GOVERNANCE POLICY – SPECIAL SERVICES EMPLOYMENTS - amend the existing policy regarding Special Services Employments in order to have the written statement for how the objectives of employment were met to be provided by the supervisor. The current policy requires that the employee on the special services assignment submit the written statement detailing how the objectives of employment were met. The intent of the change is to establish a more objective review on how the employment objectives were met and in accordance with guidelines established by the Vice Chancellor for Human Resources. Motion approved 5-0

MOTION NO. 9552
Mr. Lumm moved that Item V.B.1 be approved. Motion approved 5-0.

B. 2. MARICOPA GOVERNANCE POLICY – MANNER OF GOVERNING - amend the existing Manner of Governing Policy title. The proposed changes are reflective of the Governing Board’s overall responsibility as stewards of the institution. While the Governing Board had adapted the policy governance model to conform to the Maricopa Governance manner of governing, the Board also recognizes that it shall govern in a manner that will reinforce stakeholder accountability at the trustee level.

MOTION NO. 9553
Mr. Lumm moved that Item V.B.2 be approved. A roll call vote was taken and motion approved 5-0.

B.5. APPROVAL OF SERVANT LEADERSHIP – COMPENSATION REDUCTIONS FOR REALLOCATION - Effective July 1, 2009, salary reductions are recommended equal to one step for each acting and permanent member of the Chancellor’s Executive Council (CEC, or the college presidents and vice chancellors) and all temporary and permanent employees in MAT grades 21 and 20 positions. These shall be permanent reductions, except that if a person is acting or temporary and returns to a lower grade, the final permanent reduction shall be determined when they return to that lower grade and shall be based on that salary schedule; if returning to a grade lower than MAT 20, no permanent reduction shall be taken. Additionally, college presidents and vice chancellors will no longer receive a stipend for discretionary income for out-of-pocket expenses incurred in the performance of official duties ($3,300 per person per year). Reductions to the Chancellor are $10,361 in salary and $10,000 in discretionary income. Statutory benefit reductions are on top of compensation reductions. The related salary and benefit reductions for 127 positions total approximately $899,000. The average salary impact to CEC is a cut of $7,600, $5,800 to MAT 21 and $5,200 to MAT 20. Also effective July 1, 2009 is a suspension of the practice of awarding two month administrative leaves every four years for CEC and MAT 21 and 20 employees; this has no cost nor any savings as those who act on the behalf of the CEC or MAT member are not compensated beyond their regular pay. Funds will be reallocated to front line service needs.

MOTION NO. 9554
Mr. Lumm moved for non-approval of Item V.B.5 and be voted on by roll call vote. Item V.B.5 not approved 3-1-1 (Lumm, Campbell, Pearson – yes; Clark - no; Walker - abtained).

E.1. APPROVAL OF PRELIMINARY PROPOSED FISCAL YEAR 2009-2010 BUDGET - recommended that, by roll call vote, the District Board preliminarily adopt either Option A or B as shown below. The administration recommends that the Board adopt Option B, and our rationale follows presentation of the options.

Option A) Preliminarily approve the attached budget, totaling $1,474,031,133 for all funds. This proposed budget excludes the constitutionally permitted 2% increase in primary property taxes. This budget results in a primary tax rate of $. 7253 for every $100 of assessed valuation (or $72.53 in primary property taxes for a home worth $100,000). The current rate is $.7752; therefore, for a home that remains unchanged, taxes will decline in FY09-10. If this budget is adopted, approximately $16.8 million in additional resources in the General Fund exists and can be allocated; Table 1 shows the recommended allocations.
OR
Option B) Preliminarily approve a budget that includes a potential additional $7,321,556 in the General Fund for a total of $642,236,643 in the General Fund and $1,481,352,689 in all funds. The addition represents the value of the 2% levy increase permitted by the Constitution on existing property. This would increase the budget capacity only of the General Fund for the 2% Constitutionally permitted increase in primary property taxes; it does not mean that the 2% levy is approved. It simply provides the Board with sufficient budget capacity to approve this 2% increase pursuant to legal requirements in June. If this budget is adopted, approximately $24.1 million would be available in additional resources. We recommend that of the additional $7.3 million in resources, another $3.5 million be added for operating costs for the bond program to aggressively move to fully fund that need and the remainder be allocated for student success efforts.

MOTION NO. 9555
Mr. Lumm moved that Option B as presented in Item V.E.1 be voted on by roll call vote. Item V.E.1 approved 3-2 (Campbell, Lumm, Clark – yes; Walker, Pearson: no; ).

E.3. APPROVAL OF PROPOSED FEE CHANGES – FISCAL YEAR 2009-10 BUDGET - approve the varied fee changes detailed on the attached. These course fee changes are detailed by college.

MOTION NO. 9556
Mr. Lumm moved that Item V.E.3 be voted on by roll call vote. Item V.E.3 approved 3-2 (Lumm, Campbell, Clark – yes; Walker and Pearson: no).

E.10. APPROVAL OF PROPOSED OUT OF STATE TUITION & OTHER CHARGES FISCAL YEAR 2009-10 BUDGET - Subsequent to the March 24, 2009 Governing Board Meeting, the Joint Legislative Budget Committee of the Arizona Legislature requested information to prepare the Out of County tuition rate for students residing in counties that do not have a community college district as required by state statue. In preparing required information, it became evident that the FY 2009-10 Out of County tuition set by statute would exceed the Out of State tuition rate unless the Governing Board took action to increase tuition rates for out of state students. It is recommended that the Governing Board reevaluate the Out of State surcharge and set for FY 2009-10 a surcharge that equals the projected Out of County rate, an increase of $26.00 (12%) per credit hour from $215.00 to $241.00. Additionally, the Governing Board is requested to review and set tuition rates for delivery of instructional services to other Out of State students provided through distance learning or through corporate contracts. Finally, the Governing Board is requested to review and approve increases in other charges for special services. These increases in service fees, most notably for child care, will enable colleges to continue providing quality services.

MOTION NO. 9557
Mr. Walker moved that Item V.E.10 be voted on by roll call vote. Item V.E.10 approved 5-0.

(VI.A.)
BUDGET ANALYSIS REPORT SUMMARY
FUND 1 – GENERAL UNRESTRICTED FUND
FOR THE NINE MONTHS ENDED MARCH 31, 2009

Expenditure analysis indicates 62.5% of the budget has been expended this year as compared to 64.3% expended at this same point in time last year. 20.0% of the budget remains unexpended or unencumbered compared to 18.2% in the prior year. Revenue analysis indicates that $427.4M of the budget has been recognized. The projected fund balance will increase by ~$0.1 million this fiscal year and the projected ending fund balance for June 2009 is $102.0M.

(VI.B.)
2004 GENERAL OBLIGATION BONDS
SERIES A (2004), SERIES B (2007),
2004 CAPITAL DEVELOPMENT PLAN SUMMARY
AS OF MARCH 31, 2009

As of March 31, 2009, $403.0 million, representing approximately 94% of proceeds from the Series A and Series B issuances of the 2004 bond, have been expended, encumbered or reserved for specific purposes. Bond proceeds are invested until expended. As of March 31, 2008 the net uncommitted balances on outstanding GO Bonds are categorized as follows:

2004 GO Bond Remaining Balance
Bond Proceeds $27.2 million
Interest $17.0 million

Remaining earnings are invested and will be used for future debt service or capital projects.

NEXT MEETINGS:
President Clark announced that the next Governing Board Meetings would be a Study Session on May 5 at 5:00 p.m. and a Regular Board Meeting on May 26, 2009 at 6:30 p.m.

ADJOURNMENT
The meeting adjourned at 9:00 p.m.

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Randolph Elias Lumm
Governing Board Secretary