JUNE 22, 1994
A special meeting, notice having been duly given, of the Maricopa County Community College District Governing Board was scheduled to be held at 12:00 noon at the District Support Services Center, 2411 West 14th Street, Tempe, Arizona.
Linda B. Rosenthal, President, Roy C. Amrein, Secretary,Donald R. Campbell, Member, M. Grant Christensen, Member, Nancy Stein, Member
Paul Elsner, William Waechter, Bertha Landrum for Alfredo G. de los Santos Jr., Dan S. Whittemore, Ron Bleed, Janice Bradshaw, Raul Cardenas, Larry Christiansen, Ken Roberts for John Cordova, Art DeCabooter, Homero Lopez, J. Marie Pepicello, Phil Randolph, Linda Thor, John Waltrip, Arnette Ward
CALL TO ORDER
- The meeting was called to order at 12:02 p.m. by President Linda B. Rosenthal.
Chancellor Paul Elsner provided background information relating to the recent State Board 11-0 vote defeating the MCCCD petition to place a $460 million bond program before the citizens of Maricopa County on the November 8, 1994 general election. A history of the District's planning process for the master plan was discussed by the Chancellor.
Dan Whittemore discussed the statute requiring the State Board's consent for general obligation bonds and K-12 school districts' practice and law regarding general obligation bonds. The number of issues placed on the ballot is not mandated by law and is, therefore, an issue of strategy. K-12 districts have exclusive authority to call elections for general obligation bonds, and bond proceeds may be used for equipment.
Dr. Elsner explained that the action had left District staff stunned and shocked. He reiterated the cost of holding a special election in lieu of a general election and cited the reasons given by the State Board for their action.
Lionel Diaz distributed a chronology listing some of the major events in the planning process prior to the District Capital Development Programs of 1992 and 1994 and leading to the District's request to the State Board. The comparison between the 1992 and 1994 Capital Development Programs was provided--this information was also included in the State Board packet.
In response to a question from Roy C. Amrein, Dr. Elsner explained that the planning process and related master plan activities had been discussed with the State Board prior to the Bond request. Dr. Amrein questioned the apparent change in the relationship between the District and the State Board and expressed concern about the lack of information explaining this change. Dr. Amrein emphasized the need to maintain a good relationship with the State Board.
Linda B. Rosenthal explained the events at the State Board meetings on June 17 and 18, 1994, noting that the Maricopa County representative was absent and although he had prepared a letter prior to his departure indicating his support for the proposed Capital Development Program.. The letter was not read at the State Board meetings. Mrs. Rosenthal commented on a perceived change in atmosphere between the Friday afternoon meeting and the Saturday morning vote and expressed a lack of understanding for this change.
Donald R. Campbell stated that additional information relating to the action should be obtained and suggested a possible joint meeting or contacting individual members on the State Board to obtain further clarification.
Linda B. Rosenthal recessed the special meeting and requested that the meeting reconvene within two weeks, at the call of the Chair. Mrs. Rosenthal read the following statement, "We request the Chancellor return within two weeks to present a restructured capital development plan to discuss with the Board. It is our desire to maintain the integrity of our capital development program and to determine how best to serve our present students and our larger communities' educational needs."
The meeting recessed at 12:32 p.m.
The meeting reconvened, notice having been duly given, at 9:15 p.m. on June 28, 1995.
Linda B. Rosenthal, President, Roy C. Amrein, Secretary, Donald R. Campbell, Member, M. Grant Christensen, Member, Nancy Stein, Member
Paul Elsner, William Waechter, Bertha Landrum for Alfredo G. de los Santos Jr., Dan S. Whittemore, Ron Bleed, Janice Bradshaw, Raul Cardenas, Larry Christiansen, Henrietta Harris for John Cordova, Art DeCabooter,Oscar Gibbons for Stan Grossman, Homero Lopez, Morris Johnson for J. Marie Pepicello, Phil Randolph, Linda Thor, Joyce Elsner for John Waltrip,Arnette Ward
(A-1)1994 CAPITAL DEVELOPMENT PROGRAM GENERAL OBLIGATION BONDS - Chancellor Paul Elsner spoke about the needs of the District, the services provided, public expectations, corporate needs, and public responsibility. The District has historically planned ahead prudently and wisely. With some reservations but in the interest of providing for the needs of the community, Dr. Elsner recommended a restructured Capital Development Program. The restructured Program involves two phases and modifies only the time frame. The first phase is for $385, 799,000 for a seven year period.
Donald R. Campbell expressed concern regarding the more than two years of planning in developing the original Capital Development Program and the short time frame available for changing that plan, and suggested that perhaps the Board should consider attempting to resolve the issue with the State Board and seek the full amount requested originally. Dr. Campbell pointed out that bond funds are reinvested in the community through services provided, jobs created, etc.
Nancy Stein asked if a feasibility study had been conducted to spell out the costs of various projects. Mrs. Stein asked what could be done to get all campuses operating at full capacity and suggested that this be done prior to asking the public for additional funds. In response to Mrs. Stein's comments, M. Grant Christensen explained Mesa Community College's full utilization and continued needs for additional facilities. Classes are currently held during morning, afternoon and evening hours to accommodate three student bodies. Dr. Christensen also commented on the budgetary restrictions that had caused 1200 course sections to be dropped thus creating a slight decrease in FTSE.
Roy C. Amrein commented on the effort expended in developing the Capital Development Plan and acknowledged the skill and expertise of District administration in planning and preparing the information and proposed plan.
Linda B. Rosenthal expressed her support for the proposed modifications and stated that she believed the restructured plan to be the best solution at this time.
MOTION NO. 8266
M. Grant Christensen moved that the $459,725,000 Capital Development Program be modified so that the first phase is a 7-year period and $385,799,000 instead of the total program planned for a 10-year period, and that the scheduled pay-back period be modified to fit the corresponding phases of the plan. Motion carried 4-1. Nancy Stein was opposed.
President Linda B. Rosenthal read the following statement, "The future of the Maricopa Community Colleges is at a critical point this evening. At the request of the Governing Board, Dr. Elsner has restructured the Capital Program while still maintaining its integrity. He has suggested a phased plan. The first phase--a seven-year plan--we adopted tonight. And now we would hope that this action will enable the citizens of Maricopa County to exercise their right to vote on it in the November 8, 1994 general election.
"At this time, we know for certain the reduced amount requested for general obligation bonds will not be sufficient for the needs of our usual ten-year planning period, but we would hope that when requested (in about the year 2001 or so) the public will support the completion of this 1994 Capital Development Program."
The meeting adjourned at 9:37 p.m.
Roy C. Amrein
6/28/94 & 6/29/94