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[00:00:13]

THIS OPEN MEETING OF THE BOARD OF TRUSTEES IS AUTHORIZED IN ACCORDANCE WITH THE TEXAS GOVERNMENT CODE, SECTION 551.001 THROUGH 551.146. VERIFICATION OF NOTICE OF MEETING AND AGENDA ARE ON FILE IN THE OFFICE OF THE CHANCELLOR. PER TEXAS GOVERNMENT CODE SECTION 551.1282 THIS MEETING IS BEING BROADCAST OVER THE INTERNET IN THE MANNER PRESCRIBED BY TEXAS GOVERNMENT CODE SECTION 551.128

[1. Certification of Notice Posted for the Meeting]

I, JOE D.

MAY, SECRETARY OF THE BOARD OF TRUSTEES OF THE DALLAS COUNTY COMMUNITY COLLEGE DISTRICT, DO CERTIFY THAT A COPY OF THIS NOTICE WAS POSTED ON THE 28TH DAY OF SEPTEMBER 2018,1) IN A PLACE BUILDING, ALL AS REQUIRED BY THE TEXAS GOVERNMENT CODE ♪551.054.

>> READY?

>> C. COMPTON: DO YOU WANT TO WAIT FOR SONNY?

[A. Removing the Learning Materials Barriers Implementation Plan Presenter: John Robertson]

>> LAST MONTH WE TALKED TO YOU ABOUT REMOVING --

>> C. COMPTON: WE WERE TALKING EARLIER ABOUT YOUR NEW SYSTEM.

ONE OF THE FEATURES I WOULD LIKE FOR YOU ALL TO SEE IF YOU CAN DO, I HAVE WANTED TO BE ABLE TO PUT IN THE NAME OF A COMPANY THAT WE WERE DOING BUSINESS WITH AND SEE THE INFORMATION ABOUT THAT COMPANY, INCLUDING WHAT THEY HAVE BEEN PAID AS THEIR CONTRACT GOES ALONG.

SO I COULD KNOW AT ANY GIVEN TIME.

>> WE CAN GIVE YOU ACCESS, WE WON'T LET YOU MAKE ENTRIES BUT WE CAN LET YOU READ.

>> C. COMPTON: I CAN DO A SEARCH ON A COMPANY NEED.

THAT'S ALL I GOT TO DO IS READ WHAT COMES UP.

>> OKAY, I WAS ASKED BY THE CHAIR OF THE FINANCE COMMITTEE LAST MONTH TO BRING SOMETHING BACK HERE, SO I WANT TO TALK TO YOU ABOUT OUR IMPLEMENTATION PLAN OF WHAT WE HAVE GOING.

I AM REALLY EXCITED ABOUT THIS.

I DISAPPOINTED MY BOSS I'M NOT DOING THIS BY SPRING.

AS WE TALK ON THE LAST SLIDE, YOU WILL SEE WHY.

WE HAVE A LOT TO DO BETWEEN NOW.

DR. MAY HAS GRACIOUSLY REALIZED THIS WILL TAKE A LOT OF WORK.

>> CAN I MAKE A STATEMENT BEFORE WE GET STARTED.

IT'S IMPORTANT WORK.

AND WE WILL TALK WITH THE FACULTY COUNSEL WITH THIS.

THERE'S, AS I KNEW THERE WOULD BE, MISINFORMATION CIRCULATING ABOUT THIS.

ABOUT MATERIALS.

WE AREN'T CHANGING ANYTHING.

WHAT WE ARE CHANGING IS WHEN THE STUDENTS WILL PAY FOR IT AND WHEN THEY WILL BE GUARANTEED TO GET THEIR LEARNING MATERIALS.

>> C. COMPTON: SO HOW DOES THAT GET COMMUNICATED AT THOSE LEVELS SO THEY FULLY UNDERSTAND WHAT THIS IS?

>> WELL, WE WILL TALK ABOUT THAT.

WE WILL DO SOME F.A.Q.'S HERE REAL QUICK TO GET THOSE OUT.

I WILL TALK TO FACULTY WHEN I DO THIS PRESENTATION, BECAUSE SOME OF IT IS A REPEAT OF WHAT WE HAVE SEEN.

WE HAVE GONE OUT AND DONE BUDGET PRESENTATIONS I HAVE HAD FACULTY AND DEANS COME UP TO ME CONSTANTLY AND ASKING, WHAT CAN WE DO TO REDUCE THE PRICE OF TEXTBOOKS OR LEARNING MATERIALS.

I KEEP SAYING, WAIT IT'S COMING.

WE ARE WAITING FOR SOMETHING.

THIS HAS BEEN GOING ON A COUPLE YEARS.

BUT FACULTY ARE REALLY REALIZING THE STUDENTS NEED TO HAVE LEARNING MATERIALS BY THE FIRST DAY OF CLASS, OR THEY CAN'T BE SUCCESSFUL.

WHEN YOU GO BACK T THESE SLIDES ONLY 28% OF STUDENTS HAVE ALL THE REQUIRED MATERIALS ON DAY ONE.

TWO-THIRDS, OR MORE THAN A THIRD, BUT TWO-THIRDS ARE THE ONLY ONES THAT HAVE TEXTBOOKS.

SO A THIRD OF THE STUDENTS GO WITHOUT THE LEARNING MATERIALS PERIOD.

WHEN ARE YOU DESIGNING A COURSE AS A FACULTY MEMBER AND TRYING TO HAVE SUCCESS AND YOU ASSUME THE STUDENTS HAVE THE LEARNING MATERIALS, IT TURNS INTO HOPING THEY GOT THEIR LEARNING MATERIALS.

SO THIS IS ONE OF THOSE THINGS WE REALIZE THAT NOT ALL STUDENTS WILL LIKE IT.

WE ARE INTERESTED IN COMPLETIONS AND OUT COMES AND INTERESTED IN STUDENT SUCCESS AND THAT'S WHAT THIS IS ABOUT.

[00:05:14]

ONE THING WE TALKED ABOUT REALLY HELPED US ACHIEVE WHAT WE WANTED TO HAVE.

WE TALKED ABOUT HOW THIS WOULD IMPACT STUDENT SUCCESS.

AS I SAID BEFORE, TE FACULTY DESIGNED CLASSES TO PROMOTE LEARNING, ENGAGEMENT AND COMPLETION AND HAVING THESE MATERIALS ON DAY ONE IS REALLY GOING TO BE A GAME-CHANGER FOR THEM.

THIS IS REALLY GOING TO BE FACULTY'S GFT TO STUDENTS TO COMPLETE AND CONTINUE ON.

WE LOOKED AT.

AVERAGE COST IS ABOUT $124 PER COURSE OR $41.40 PER CREDIT HOUR.

48% IS DIGITAL.

THAT'S AN INCREASED USE BUT DIGITAL MATERIALS ARE AVAILABLE IN THE CURRENT SELECTIONS THAT FACULTY HAVE CHOSEN.

BUT WHAT WAS IMPORTANT HERE WAS WE COULDN'T GO TO DIGITAL ALL AT ONCE.

WE NEEDED TO BE ABLE TO KEEP THOSE SAME LEARNING MATERIALS IN PRINT FORM.

AND ONE OF THE THINGS THIS PLAN ALLOWED US TO DO IS KEEP THE SAME MATERIALS AS WHAT WE HAVE HAD BEFORE.

AND SOME THINGS WILL PROBABLY NEVER BE AVAILABLE.

IF A STUDENT WANTS TO BUY A BOOK, THEY CAN BUY A BOOK.

THEY WILL HAVE A PRINT OPTION THAT WILL BE AVAILABLE THEY CAN DO BUT THIS WON'T PROHIBIT A STUDENT FROM ADDITION ALLY BUYING A BOOK IF THEY WANT TO BUY A BOOK.

WE WILL HAVE A LOOSE-LEAF NOTEBOOK WHAT THEY NEED TO HAVE, IF IT'S A LEARNING LAB.

>> THEY CAN PRINT IT AT THE LIBRARY, THEY CAN PRINT THE OTHERS BUT THEY WILL BE ABLE TO DOWNLOAD THESE BOOKS AND BE ABLE TO TAKE THEM WITH THEM AND DO STUDYING AND SO ON AND SO FORTH.

>> CHAIR D. FLORES: SO IF THEY DON'T WANT THE DIGITAL, THEY WANT THE PRINT, TIS ARRANGEMENT WILL NOT ALLOW THEM TO GET THE PRINT HARD-BOUND COPY.

THAT'S ON THEM TO MAKE COPIES?

>> THAT'S TRUE.

TO GET TO THE $20 PER CREDIT HOUR PRICE POINT WE NEEDED THIS WAS THE BEST ALTERNATIVE WE COULD COME UP WITH TO GET THE BEST OF BOTH WORLDS.

THERE WILL BE SOME CURRENT STANDARDS THAT ARE IN PRINTED FORM BUT THEY ARE AVAILABLE DIGITAL.

THEY WOULD NED TO USE THOSE DIGITAL VERSIONS.

THAT'S WHAT HELPS DRIVE THIS PRICE DWN AFFORDABLE WITH WHAT WE WANT TO DO.

ONE ADVANTAGE TO DIGITAL IS THEY CAN CHANGE THE MATERIALS EVERY YEAR.

>> D. ZIMMERMANN: AFTER YOU USE A DIGITAL BOOK AT THE LIBRARY, THAT AFTER SO MANY USES.

>> SOME LET YOU HAVE THE DIGITAL VERSION AS LONG AS YOU WANT.

SOME HAVE A SIX-MONTH TIME LIMIT.

IT ALL DEPENDS ON HW THEY ARE SET UP WITH WHAT THEY WANT TO DO.

THAT'S ONE OF THE REASONS WE WANTED TO NOT DEAL WITH THE PUBLISHERS THEMSELVES AND WE ARE USING FOLLETT TO MANAGE THE CONTRACTS AND MANAGE OUR BOOK COST WITH THE PUBLISHERS.

IT'S IT'S HIGHLY COMPETITIVE.

WE WILL TALK WITH ONE AND WE DID AN IN-RUN TO TRY TO BEAT THE COMPETITION ON THIS.

[00:10:06]

>> 80% OF OUR LEARNING MATERIALS ARE WITH FIVE PUBLISHERS.

THERE'S AN ACADEMIC FREEDOM ISSUE.

THAT'S WHY THIS ONE WORKED TO GET ME THE PRICE POINT DR. MAY AND I WERE LOOKING FOR BUT ALSO KEPT WITH THAT, THEY WERE STILL HAVING THE SAME LEARNING MATERIALS THEY HAD SELECTED BEFORE.

>> THEY HAVE THE MATERIALS RIGHT THERE WITH THEM WITH DIGITAL.

I PERSONALLY LIKE THEM BECAUSE I'M NOT LUGGING AROUND.

I DID THAT FOR READING.

I USED A NOOK BECAUSE I DON'T WANT TO CARRY FIVE DIFFERENT BOOKS IF I AM FLYING OR TRAVELING.

THEY ARE ALL IN ONE READER.

WHETHER THE BOOKSTORE ON L.M.S., TE CONVENIENCE FACTOR THEY DON'T WANT TO SEARCH IT DOWN AND BE ABLE TO FIND IT.

>> I JUST NEEDED TO GIVE THIS TO YOU.

NOT TRYING TO SELL IT AGAIN.

IF YOU LOOK AT THE LAST ROW HERE THE 60 HOURS IS AN ASSOCIATE DEGREE AND WE ARE BLOWING THE DOORS.

THIS IS WITH THE $20 INCREASE IN TUITION.

BUT THESE ARE THE PUBLISHED FIGURE THE SIX BIG COLLEGES GIVE COST OF ATTENDANCE FOR TUITION AND BOOKS.

WE BACKED OUT BOOKS, ADDED $20 AND KEPT THE SUPPLIES IN THERE AND COMPARED OURSELVES TO WHAT EVERYBODY ELSE IS REPORTING.

AND I WILL TELL YOU, THEY HAVE DIFFERENT VERSIONS.

THEY RUN BETWEEN $150 AND $468 FOR BOOKS PER COURSE.

THAT'S HOW TEY DO IT, PER COURSE.

WE CONVERT TO GET THEM INTO SEMESTER CREDIT HOURS BUT WE ARE HALF PRICE COMPARED TO OTHERS OF WHERE WE ARE GOING TO BE.

THAT'S THE IMPACT WE ARE HAVING ON OUR STUDENTS.

WE ARE LOWERING THE COST OF ATTENDANCE.

>> D. ZIMMERMANN: SAY WITH PELL, DOES PELL PICK THAT UP?

>> YES, THAT'S WHY WE ARE PACKAGING WITH TUITION.

>>

>> YES.

THIS IS THE AFTER-EFFECT IF YOU WILL, COMPARED WITH OTHERS.

NOBODY ELSE IS DOING THIS.

WE ARE THE ONLY ONES ROLLING THIS IN TOGETHER.

>> WE ARE DOING A COUPLE OF THINGS THERE IN THE PROCESS.

AS I LOOK THROUGH I'M SURE THEY SEE THE BOOKS AS A REVENUE SOURCE.

WE TOOK THOSE OUT SEVERAL YEARS AGO.

WHEN THE LAST CONTRACT, FOUR YEARS AGO, WE ELIMINATED TAKING ANY PROFIT OFF THE TEXTBOOKS.

I GAVE US A SLIGHT BUMP OF ABOUT 6% USAGE BUT IT DIDN'T SOLVE THE PROBLEM.

I SAY THAT SO IT'S NT JUST THIS FACT HERE.

WE STILL AREN'T TAKING A PROFIT ON THE BOOKS.

WE GET IT ON THE SWEAT SHIRTS AND PINS AND WHATEVER BUT NOT THIS.

>> BEING THAT WE ARE CHEAPEST, OTHER THAN BRAGGING RIGHTS WHAT ELSE DO WE ACCOMPLISH? ARE WE MAKING GOOD BUSINESS DECISIONS BY BEING THE LOWEST?

>> I THINK WE HAVE BEEN VERY LUCKY FOR THE PAST FOUR YEARS.

THAT I'VE BEEN DIRECTLY INVOLVED WITH THIS, T.A.B.'S AND TAX REVENUE THAT ALLOW US TO KEEP THAT BUT AT SOME POINT IN TIME WE WILL BE TALKING ABOUT HOW DO WE MEASURE THAT.

BUT I THINK EFFICIENCY MAY BE MORE THAN THE CHEAPEST.

WE LOSE A LARGE PERCENTAGE OF THOSE FOLK TAT'S SHOULD BE RETURNING AND COMING BACK AND PAYING TUITION WITH US WITH

[00:15:03]

THEIR PELL GRANTS.

THAT'S REALLY GOING TO BE THE TEST.

ARE WE ABLE TO GET MORE STUDENTS TO START A TERM, TO FINISH THAT TERM AND THEN ARE THEY COMING BACK FOR THE NEXT FULL TERM.

IF WE BELIEVE IT WILL HAVE AN IMPACT ON THAT.

IF YOU HAVEN'T READ YOU GET BEHIND AND YOU MIGHT DECIDE I'M NOT GOING BACK, I'M NOT CAPABLE, SO THEY LOST WHATEVER THEY PAID FOR UP FRONT.

IF YOU THINK ABOUT, NAME ANOTHER BUSINESS MODEL THAT SAYS YOU WILL PAY FOR THE COURSE, BUT BY THE WAY, IF YOU WANT TO BE SUCCESSFUL YOU HAVE TO GO SOMEPLACE ELSE AND BUYING EVERYTHING YOU NEED.

THAT WOULD BE LIKE BUYING A CAR AND GOING SOMEWHERE ELSE TO GET THE SEATS.

IT'S RIDICULOUS THAT THIS MODEL WAS SET UP THAT WAY HISTORICALLY, THAT IT'S TWO SEPARATE TRANSACTIONS FOR ONE COMMON OUTCOME WE ARE TRYING TO SEE.

WE HAVE SEEN THIS BEFORE BUT JUST WANT TO REPEAT IT.

WE WILL ACTUALLY LEAD THE NATION IN THE DIGITAL DELIVERY AND AFFORDABILITY.

IT'S $27.4 MILLION.

IF ALL STUDENTS BOUGHT THE MATERIALS IT'S $54 SOMETHING MILLION DOLLARS.

WHAT WE WILL HAVE WITH THIS, THE STUDENTS WILL SAVE $27.4 MILLION OVERALL.

IT'S A HUGE NUMBER.

WE WILL ALSO HVE ACCESS TO COLLEGE ACADEMIC TOOL SET, AND SOME OTHER THINGS THEY NEED.

FOLLETT HAS AGREED TO GIVING US A MULTIYEAR FINANCIAL CONTRIBUTION.

ONE OF THE THINGS, WE HAVE PIONEER FACULTY RIGHT NOW THAT ARE USING SUCH THINGS AS OPEN STACKS AND OTHER FORMS OF O.E.R. AND ADOPTION AND ABILITY.

THIS IS ONE OF THE AREAS WE WENT TALKING TO PEOPLE AND FIGURING OUT, WE NEEDED HELP.

OR WE NEEDED AN OFFICE THAT WE COULD HELP SPUR EVEN MORE IS TAKE THOSE PIONEERS THAT WE HAVE, THE FACULTY PIONEER AND ALSO IMPROVE IT, MAKE IT EASIER, JUST LIKE WITH INSTRUCTIONAL O.E.R. OPEN EDUCATIONAL RESOURCES.

FOR INSTANCE, YOU COULD GOOGLE INFORMATION AND GET CERTAIN HISTORY, OR PSYCHOLOGY, WHATEVER INFORMATION THAT YOU WANTED BUT IT NEEDS TO BE DESIGNED.

SOME HAVE BRANDED O.E.R.

MATERIALS BUT THOSE AE STILL A COST WE HAVE TO PAY FOR.

SOME EVERYBODY KNOWS THE HIGH COST IS WHAT KEEPS STUDENTS FROM BEING SUCCESSFUL IN BOTH COLLEGES AND UNIVERSITIES.

>> D. ZIMMERMANN: BEFORE YOU BUMP PATHS, A MULTI-YEAR FINANCIAL CONTRIBUTION.

SO THAT'S LKE WHEN WE WERE TAKING THE BENEFIT FROM SELLING BOOKS.

>> ACTUALLY, IT'S NOT.

THIS IS COMING FROM THEIR NON-PROFIT ARM, OR HOW THEY PUT MONEY BACK IN.

WE AREN'T TAKING THAT BUT WHAT THIS ALLOWS US.

>> MAKE IT AVAILABLE TO FACULTY WHO MAY WANT RELEASE TIME TO WORK ON SME OF THESE EFFORTS.

>> QUESTION, SAME POINT.

2.5 MILLION OVER 10 YEARS THAT'S $250,000.

[00:20:01]

THAT'S NOT A WHOLE LOT.

AT THE SAME TIME FIVE YEAR CONTRACT, NOW I'M SEEING A TEN YEAR.

THIS IS THE ONLY PEOPLE WE HAVE A TEN-YEAR CONTRACT WITH?

>> PRESENTER: WE DON'T HAVE ONE RIGHT NOW, WE CURRENTLY HAVE A FIVE-YEAR CONTRACT.

IT HASN'T BEEN NEGOTIATED YET.

I DOUBT WE WOULD SUPPORT ANYTHING ALONG THAT LINE.

IT WOULD HAVE TO BE COMING BACK AND BE LOOKED AT AGAIN.

THE MARKET IS GOING TO CHANGE ON THIS IN TEN YEARS.

THEY MAY BE THE LEADER ON THIS RIGHT NOW.

IF WE LEAVE SOME OF THIS ON THE TABLE, THAT'S OKAY, WE WANT TO DO WHAT'S IN THE BEST INTEREST OF THE STUDENTS.

>> D. ZIMMERMANN: BECAUSE TOMORROW THIS MAY BE OUTDATED.

>> CORRECT.

THE FIRST THING WE HAD TO DO IS GET A TEAM TOGETHER.

WE ASSEMBLED THE CORE TEAM.

ANNA MAY IS GOING TO HELP US WITH THE DUAL CREDIT.

CHEMENE CAN HELP US FROM A FINANCIAL AID STANDPOINT.

I WAS LOOKING FOR ONE PROJECT LEAD AND I REALIZED THIS IS TOO BIG FOR ALL OF US.

THREE HAVE VOLUNTEERED TO HELP WITH ALL OF THIS, MAKING SURE WE GET ALL WE NEED OUT INTO THE INFORMATION.

WHAT I'M NOT SHOWING IS THE COLLEGE TEAMS THAT WE ARE GOING TO PREPARE AS WE GO THROUGH THIS.

WE HAVE FACULTY REPRESENTATION WE NEED TO ADD AND THEN LOOKING STILL FOR PRESIDENTIAL VOLUNTEER.

>> CHAIR D. FLORES: THEY WILL WORK WITH THE CORE TEAM?

>> YES.

WE WILL PROVIDE BUT WE NED TO KEEP THIS LOCAL TOO BECAUSE JUST LIKE EVERY CAMPUS HAS A BOOKSTORE.

WE WANT BOOKSTORE MANAGERS INVOLVED, THE I.T. DIRECTORS KNOWING WHAT'S GOING ON.

THE STUDENT SERVICE PEOPLE, THE ADVISORS, THE FACULTY.

WE WANT FRONT LINE TEAMS.

>> CHAIR D FLORES: WHO WOULD BE RESPONSIBLE THEN MAKING SURE AT THE LEVELS OF STAFFING THAT NEED TO BE INFORMED, THEY WOULD BE INFORMED?

>> PRESENTER: WE WILL TAKE THE RESPONSIBILITY FOR THAT BUT WE WILL WORK WITH THE COLLEGE MAKING SURE THEY ARE INFORMED, WITH THE SAME STORY.

AND I'LL BE GOING AROUND.

IT WILL BE MORE OF A HIGH LEVEL DISCUSSION AS I GO TO EACH OF THE COLLEGES STARTING THIS WEEK AND TALKING ABOUT SOME OF THE INITIATIVES AND ISSUES THERE.

>> WE WILL START TESE MEETINGS, DEVELOP CONTRACT MEETINGS FOR THE I.S.D., NEGOTIATE THE CONTRACT.

>> C. COMPTON: WHAT TYPE OF CONTRACT IS THIS GOING TO BE WITH THE I.S.D.'S? PRESENTER: DUAL CREDIT AND EARLY HIGH SCHOOL COLLEGE CONTRACTS.

>> RIGHT NOW WE REQUIRE THE SCHOOL DISTRICTS PURCHASE ALL OF THE LEARNING MATERIALS SO THAT WILL REQUIRE A CONTRACT CHANGE HOW WE DO THIS GOING FORWARD.

>> PRESENTER: WE HAVE A SITUATION WHERE WE SUPPLEMENT.

>> C. COMPTON: WE USED TO GIVE THEM MONEY.

>> PRESENTER: WHAT SCHOOL DISTRICTS WILL TELL YOU, WHEN

[00:25:02]

WE USE THEIR FACULTY WE HAVE A SCHEDULE TO PAY THEM.

THAT MONEY WHEN IT GOES T I.S.D. GOES TO US TO THE GENERAL FUND AND THEY CAN TURN AROUND AND USE IT LIKE C.F.O.

>> C. COMPTON:

>> PRESENTER: YES, MA'AM.

WHERE WE USE THEIR FACULTY WE PAY THEM.

WE WERE SUPPLEMENTING THE I.S.D. AND THE MONEY WE WERE GIVING THEM.

THEY WERE SUPPOSED TO BE USED TOWARD THE PROGRAM.

>> WE WILL BE WORKING ON GETTING THE F.A.Q.'S OUT FOR STUDENTS AND FACULTY.

ONE OF THE THINGS IS WE HAVE A SPRING ADOPTION DEADLINE COMING UP FOR THE SPRING SEMESTER AND THE EARLY WE CAN START SOME OF THIS TRAINING FULL SETS AND OTHER THINGS WE HAVE TO DO, I THINK THAT'S REALLY GOING TO HELP.

WE HAVE A LOT OF WORK TO DO OVER THE NEXT COUPLE MONTHS.

WE CONDUCT THESE FORUMS AND WORK WITH FOLLETT ON THE OFFICE OF CONTENT AND COURSEWARE.

STUDENT MARKETING.

WE WILL START THAT IN SPTEMBER AND THAT WILL GO LIVE IN FALL THROUGH THE SUMMER.

WE WILL HAVE A WHOLE BATCH OF NEW STUDENTS IN THE FALL WE WILL HAVE TO EDUCATE WHAT WE ARE DOING HERE ALSO.

WE WILL DO ALL THE FACULTY INFORMATION SYSTEMS, TRAIN TEM ON THE FOLLETT TOOLKITS.

IN FEBRUARY WE WILL HAVE TO TALK ABOUT THE TUITION.

BECAUSE I WILL NEED TO HAVE THE TUITION INCREASED IN FEBRUARY IF WE GO LIVE.

IN SUMMER.

I DON'T WANT TO ASK FOR THAT NOW BECAUSE WE WANT TO SEE HOW WE ARE PROGRESSING ON EVERYTHING.

THIS IS THE GOAL TO GET THIS STARTED THIS SUMMER.

>> WE COULD ADD A FEE BUT YOU HAVE TO LET THEM OPT-OUT.

THEY WON'T BE IN A POSITION TO OPT-OUT OF IT.

>> ARE WE RENEGOTIATING THE CONTRACTS FOR THE DUAL CREDIT IS GOING TO CAUSE A HICCUP WITH THIS AND RAISING OF TUITION AND INCORPORATING THE BOOK CHARGES IN THERE.

>> PRESENTER: THE MAIN IMPACT IS TO OUR FOUNDATION ON THAT AS WE LOOK AT IT.

AS WE SEE THE STUDENTS WHO COME IN, THAT WILL INCREASE THE GAP ON SOME STUDENTS THAT ARE THERE.

THIS IS STILL BELOW THE AVERAGE TUITION IN THE STATE OF TEXAS.

THE PELL GRANT SHOULD COVER IT FOR ALMOST EVERYONE BUT FOR THOSE NOT COVERED WE WOULD SEE AN INCREASE.

>> WE USE THE TOOLS ON THE FOLLETT PLATFORM AND NOT USE WHAT THEY ARE USING TODAY.

WHAT PERCENT OF THE INSTRUCTIONAL CONTENT WILL BE DISPLACED?

>> THAT'S NOT ACCURATE.

FACULTY STILL USE THE SAME MATERIALS THEY ARE USING NOW.

>> ANY BOOK ANY FACULTY MEMBER IS USING NOW THEY WILL BE ABLE TO PROCURE THAT ON THE FOLLETT FORM SO THERE'S NO ARGUMENT THAT COULD BE MADE.

>> IT'S FCULTY SELECT, IT'S THEIR CALL, WE WILL GIVE THEM TOOLS TO LOOK AT OTHER OPTIONS.

>> THE TOOLSET GIVES THEM AN ABILITY TO DO THAT.

THERE'S TWO DIFFERENT WAYS.

HE JUST STUDIED THAT.

RIGHT NOW EITHER FACULTY -- THEY DON'T BITE.

SOME FACULTY USE IT TODAY BUT IT'S NOT VERY MANY.

DO YOU REMEMBER OFFHAND 5% OF FACULTY WERE USING FOLLETT'S TOOL SET NOW?

>> WE HAVE FACULTY INDICATING THEIR CHOICE OF TEXTBOOK.

WE HAVE TO ROUTES FACULTY ARE

[00:30:01]

INDICATING TEIR CHOICE OF TEXTBOOK.

ONE ROUTE IS USED BY THE LARGE MAJORITY OF OUR FACULTY THAT ARE INDICATING THEIR BOOK CHOICES OFTEN TO DIVISION OFFICES, DIVISION SECRETARIES, DIVISION ADMINISTRATORS, THAT'S A COMMON ROUTE BUT THEY CAN SELF SERVICE THAT CHOICE THROUGH E-CAMPUS.

5% ARE CURRENTLY SELF-SERVICING THROUGH E-CAMPUS.

VAST MAJORITY USING THROUGH E-TEXTBOOK.

>> PRESENTER: WE WILL MAKE THIS AVAILABLE BUT IT DOESN'T CHANGE WHAT MATERIALS THEY HAVE SELECTED.

>> THERE'S NO RESTRAINT ON ACADEMIC FREEDOM OR DISCRETION TO PICK CONTENT MATERIALS? EVERYTHING THEY ARE USING TODAY WILL BE AVAILABLE?

>> THAT'S CORRECT.

I WILL CAVEAT, I DOESN'T JUST MEAN BECAUSE THEY ARE FREE I CAN QUADRUPLE THE LEARNING MATERIALS BUT THEY CAN SELECT WHAT THEY NEED TO HAVE.

IT DOESN'T MEAN WHAT THEY ARE USING TODAY.

THEY MAY CHANGE IDEAS WITH ONE OF THE PUBLISHERS WE OFFER BOOKS THROUGH AND SELECT SOME OTHER BOOK BUT IT WAS IN THE WHOLE TOOL SET OF WHAT WE HAD AVAILABLE.

SO THEY AREN'T BEING LIMITED.

IN TALKING TO FACULTY THEY ARE CONCERNED ABOUT THE COST.

SO ON ONE HAND, SOME FEEL THERE'S JUST NOT MUCH CHOICE THERE.

WE HAVE A LARGE PERCENTAGE IN HEALTH RELATED FIELDS AND THERE'S JUST NOT A LOT OF OPTIONS.

THOSE BOOKS WILL STILL HAVE TEXTBOOKS AND THEY ARE STILL GOING TO BE EXPENSIVE IF YOU WERE TO BUY THEM DIRECTLY.

THIS LOWERS THAT COST FOR EVERYONE WITHOUT CHANGING WHAT THEY ARE DOING.

DOROTHY?

>> D. ZIMMERMANN: YEAH, I REMEMBER CLEARLY THE GENTLEMAN FROM FOLLETT MADE THE COMMENT, IF THEY DON'T HAVE THE BOOK, THEY HAVE REASONABLE FACSIMILES.

I THOUGHT HE MADE A VERY CLEAR POINT THEY MAY NOT HAVE EVERY SINGLE ONE THAT EVERYBODY WANTS.

BUT THEY HAVE REASONABLY USEFUL MATERIALS, IF THEY DON'T HAVE THE EXACT BOOK.

>> PRESENTER: THAT SHOULD STILL BE THE FACULTY MEMBER'S CHOICE.

IF THEY WANT TO KEEP WHAT THEY HAVE NOW, THAT'S FINE.

FOLLETT HAS OFFERED TO DROP IT AS LOW AS $4.50 IF WE COULD CREATE OTHER SAVINGS ALONG THE WAY.

BUT IT'S STILL COMPLETELY UP TO THE FACULTY MEMBER.

>> D. ZIMMERMANN: THE WAY I UNDERSTOOD IT, THEY DON'T HAVE EVERYTHING THAT'S POSSIBLE OUT THERE BUT THEY HAVE REASONABLE FACSIMILES.

THEY HAVE SOMETHING THAT APPROACHES --

>> PRESENTER: IN SOME AREAS.

THEY GO THROUGH AND HAVE ALL OF THE ADOPTIONS FACULTY HAVE HAD AND KNOW HOW TO SOURCE THOSE.

80% COME FROM FIVE PUBLISHERS, THE OTHER 20% ARE 300 SOME PUBLISHERS.

IT'S A LOT.

THEY CAN SELECT WHAT THEY HAVE.

FOLLETT'S JOB TO FIGURE OUT WHERE THEY CAN GET IT FOR THE BEST PRICE.

>> THE FACULTY WILL BE SHOWN ALL OPTION THAT'S ARE AVAILABLE AND THEY WILL BE SHOWN THE COST THAT WILL BE PAYING THAT'S OUT THERE TO IT.

IF THEY CHOOSE THAT, THAT'S GREAT.

IF THEY DON'T CHOOSE IT, THAT'S THEIR CALL.

TO JOHN'S POINT WE BELIEVE FOLKS WILL TAKE A LOOK AND MAKE THE BEST DECISION IN THAT PROCESS.

>> CHAIR D FLORES: THE BOOKS FACULTY USE THEY ARE AVAILABLE THROUGH FOLLETT, CORRECT?

>> UH-HUH.

>> CHAIR D. FLORES: IF THEY ARE USING A TEXTBOOK OR A MANUAL, THE STUDENT CAN GET THOSE TEXTBOOKS OR MANUALS AT FOLLETT.

THEY DON'T HAVE TO GO SHOPPING SOMEWHERE SNELS -- ELSE?

>> PRESENTER: CORRECT.

>> C. --

>> CHAIR D. FLORES: IT STANDS TO REASON IF FOLLETT IS PROVIDING EVERYTHING REQUIRED IT WOULD BE AVAILABLE IN HARD COPY NOW BECAUSE THAT'S WHAT THEY ARE DOING NOW?

>> PRESENTER: CORRECT.

I'M SURE THERE'S TIME THAT DOESN'T FIT BUT 99% YES, I HATE TO SAY 100.

WE THINK STUDENTS WHO DON'T GET THEIR MATERIALS INTEND TO DO IT.

[00:35:35]

>> WE DO HAVE A PROMISE PROGRAM.

SOME OF THE STUFF PICKED OUT.

FOUR MONTHS AWAY.

WHAT IT WILL LOOK LIKE FOR THE STUDENTS.

THAT'S PART OF WHAT WE HAVE WITH MARKETING PEOPLE, THE COMMUNICATION BUT ALSO HOW WE DO THAT, FOLLETT HAS GIVEN US SOME TYPICAL COMMUNICATIONS, THEY HAVE USED ELSEWHERE.

WE NEED OUR COMMUNICATION PEOPLE TO LOOK THROUGH THAT AND MAKE SURE IT FITS WITH WHAT IT HAS.

WE HAVE TO HAVE A LARGE SPACE BEFORE SCHOOL STARTS WHERE STUDENTS GO BY AND PICK UP THEIR HARD COPY.

THAT'S WHY LONG TERM DIGITAL IS THE WAY TO GO.

WE HAVE TO HAVE A SPACE WHERE THEY HAVE A BAG WITH ALL THEIR LEARNING MATERIALS IN IT.

ONLINE BOOKSTORE FOR EVERY COURSE THAT'S TAUGHT IN THE COMMUNITY COLLEGE DISTRICT.

STUDENTS WOULD BE ABLE TO ACCESS THAT, DOWNLOAD ELECTRONIC CONTENT, THEY WLL DO THAT WORK.

>> OUR UNDERSTANDING FROM OUR CONVERSATIONS WITH FOLLETT SO FAR INDICATE IN THE WORK THEY HAVE DONE PREVIOUSLY THEY PROVIDE STUDENTS WITH WHAT THEY CALL A BOOKSHELF, ELECTRONIC BOOKSHELF AND IT'S ESSENTIALLY A LIBRARY FOR THE STUDENT OF THE BOOKS THAT HAVE BEEN CORRELATED WITH THE COURSES THEY ARE TAKING.

OUR INSTRUCTORS WILL TELL US WHAT BOOKS ARE ASSOCIATED WITH CLASSES WHEN WE KNOW WHAT CLASSES THE STUDENT IS TAKING, ONE WEEK BEFORE THAT CLASS BEGINS, THAT'S THE INTENTION AT THIS POINT IN TIME, THE BOOKS WILL BE MADE AVAILABLE FOR THE STUDENTS ELECTRONICALLY.

>> AN EMAIL THEY WILL ACCESS, FOR THE 52% THAT ARE STILL HARD COPY THEY WILL HVE TO GO TO A PHYSICAL LOCATION.

>> THE MATERIALS ARE DEFINED, THEY DON'T HAVE TO SEARCH.

THEY WILL GO TO A SITE THAT WILL HAVE THAT LIFRM FOR THEM.

-- LINK FOR THEM.

NOT I'M TAKING BIOLOGY, WHAT'S MY BIOLOGY BOOK.

BY THEIR REGISTRATION AND ENROLLMENT IN A CLASS, SOMETIMES THAT OCCURS AS EARLY AS APRIL FOR A FALL SEMESTER, THEIR LEARNING MATERIALS WILL QUEUE UP FOR THEM.

I'VE HARD IT DEFINED THAT THE STUDENTS USING THE SAME LOG-IN CREDENTIALS THEY HAVE WITH US WILL ACCESS A PLACE WHERE THEY CAN DOWNLOAD DIGITAL OR BE TOLD HOW TO GET THEIR HARD COPIES.

THEY WILL HAVE TO SEARCH.

IT WILL ALREADY BE PACKAGED.

>> NOT GOING UP AND DOWN PULLING OFF THE BOOKS.

WE BELIEVE OUR REGISTRATION ENROLLMENT I.T. INFRASTRUCTURE, THERE WILL BE NO INTEROPERABILITY PROBLEMS AT ALL?

>> THEY ALREADY

>> THEY ALREADY KNOW OUR ENROLLMENT FIGURES.

THEY GET THEM AS A HSTORICAL DATA SHARING AGREEMENT THEY

[00:40:01]

HAVE ALWAYS HAD OUR ENROLLMENTS BECAUSE THEY NEED TO KNOW TO EXPECT HOW MANY ARE COMING IN THOSE COURSES.

THE FACT OUR STUDENTS HAVEN'T BOUGHT FULLY THEY STILL HAVEN'T STAGED ANY ANTICIPATION THAT A STUDENT WOULD COME THE NUMBER OF BOOKS.

DELIVER 75,000-100,000 BY THE FALL OF NEXT YEAR.

THAT SOUNDS LIKE A HUGE CHALLENGE.

THAT'S A PART OF WHY I LIKE TO PUSH FOR GETTING THE BUGS WORKED OUT IN THE SUMMER.

>> THEY HAVE ROLLED THIS OUT.

>> THEY GOT IT BIGGER.

THE DISTRICTS ARE HUGE AND THEY SUPPLY TEXTBOOKS BOTH IN ELECTRONIC AND HARD COPY FORMAT TO THE PUBLIC SCHOOL DISTRICTS ALL ACROSS THE COUNTRY.

SO WE DID MEET WITH THEIR K-12 DISTRIBUTION MANAGER HERE.

IF YOU THINK ABOUT IT, I WORK IN A K-12 SCHOOL DISTRICT WITH 120,000 STUDENTS.

WE OUT SOURCED OUR TEXTBOOK DELIVERY TO FOLLETT.

THEY SWITCHED A WHOLE SCHOOL DISTRICT OVER WITHOUT A PILOT IN LESS THAN SIX MONTHS.

THIS IS THE NOTICE OF OPERATION FOR YEARS.

THEY HAVE DELIVERED TEXTBOOKS.

IF YOU HAD A CHILD GO TO PUBLIC SCHOOL THE MOMENT THEY GO TO SCHOOL THE TEXTBOOKS ARE THERE.

THEY ARE IN THE TEXTBOOK DELIVERY BUSINESS WHETHER HARD COPY OR DIGITAL.

WE ARE ONE OF THE TOP COLLEGES BUT WE ARE SMALL IN TERMS OF K-12 WE ARE TALKING ABOUT DISTRIBUTION OF CONTENT AND THEY HAVE DONE THAT VERY WELL IN THE K-12 ENVIRONMENT.

THEY DO IT GREAT IN THE COLLEGE ENVIRONMENT TOO.

WE HAVE MORE PUBLIC SCHOOL THAN COLLEGE STUDENTS BY FACTORS OF TEN.

THEY GET SO MUCH MORE MONEY PER BOOK PER UNIT IN COLLEGE TEXTBOOKS BECAUSE THERE'S FEWER OF THEM THAN THEY HAVE EVER HAD IN K-12.

>> D. ZIMMERMANN: BUT THIS IS MORE ON THEIR SYSTEM THAN OURS?

>> YES.

THEIR SYSTEM IS FAR MORE COMPLEX.

>> DOES IT INCLUDE TERMS OF PLACING THE SOFTWARE AND CONTENT ON PLATFORMS THEY CAN ACTUALLY USE.

>> PRESENTER: THEY ALREADY DO THAT, THEY DELIVER 42% OF OUR MATERIALS ARE ALREADY IN DIGITAL FORMAT.

>> ARE THEY E-READERS? BECAUSE ALL OF OUR STUDENTS MAY NOT HAVE THAT, RIGHT?

>> PRESENTER: THAT'S THE DISCUSSION WE HAVE BEEN TALKING ABOUT LONG-TERM HOW WE WANT TO CONDITION THAT.

>> WE HAVEN'T MADE THAT DECISION YET.

>> RIGHT NOW THE 52 AND 48% SPLIT IS WHAT OUR CURRENT DISTRIBUTION IS.

52% OF OUR LEARNING MATERIALS ARE TEXTBOOK AND 48% ARE DIGITAL.

THAT'S THE BGINNING OF THIS CONTRACT MATCHES THAT DISTRIBUTION.

>> SONNY?

>> JL S. WILLIAMS: STUDENTS SHOULD HAVE WHAT DO WE HAVE IN THE CONTRACT THAT SAYS SUDDEN GROUPS, CAN'T GET 200 OF THEM OUT.

IT HAS TO BE WITHIN 10 DAYS, ONE DAY, SIX MONTHS? IF THEY CAN'T GET THE BOOK, ARE THEY GOING TO SAY SORRY WE CAN'T GET IT TO YOU.

HAVE WE PUT IT IN THE CONTRACT?

>> PRESENTER: THE CONTRACT HASN'T BEEN WRITTEN YET BUT WE WILL MAKE SURE THERE'S THAT PROVISION SOMEWHAT FAMOUS FOR THAT.

>> JL S. WILLIAMS: TALK IS CHEAP.

>> PRESENTER: OCCASIONALLY SOMETHING HAPPENS ON THAT, ICE STORMS OR SOMETHING HAPPENS.

>> PRESENTER: PART OF THE DISCUSSION WITH FOLLETT IS MY INTENTION IS TO PUT YOU OUT OF THE PHYSICAL BOOK BUSINESS.

THAT'S WHAT'S COSTLY.

THAT'S WHAT'S THE PAIN.

THAT'S WHAT STUDENTS HATE.

THEY BUY IT FOR $200 AND THEY BUY IT BACK FOR $20 AT THE END OF THE SEMESTER.

>> CHAIR D. FLORES:

>> I RAISE MY HAND TO THAT.

THAT'S WHY WE WILL MAKE THE PRINT OPTION STILL AVAILABLE.

THE STICKLERS DR. MAY AND I HAD

[00:45:01]

WHILE DESIGNING THIS, TEY HAD TO GET WHAT FACULTY CURRENTLY HAD ALREADY ACHIEVE PRINT ALTERNATIVE, WE HAD TO HAVE A WAY OF GETTING IT UNDER $0 PER SEMESTER CREDIT HOUR.

THAT'S BEEN THE MOST DIFFICULT PART UNTIL FOLLETT CAME THROUGH AND SAID WE CAN DO IT AND THAT'S IMPORTANT.

WHERE FACULTY PROBABLY WILL DISLIKE ME IS THE GREEN FIRST FLYING ON THE OTHER.

TO HAVE, TO MAKE THIS WORK, 100% BOOK ADOPTIONS BY THE DUE DATE.

THE DUE DATE IS IN MARCH BY SUMMER.

WE CURRENTLY HISTORICALLY RUN ABOUT 20% ON TIME BOOK ADOPTIONS.

SO THIS IS A BIG CHALLENGE.

THIS IS ONE OF THE REASONS WHY I WAS PUSHING THIS SUMMER WE HAVE TO WORK WITH FACULTY, WE HAVE TO HELP THEM UNDERSTAND ALL THEY CAN DO AND HOW IMPORTANT THEIR ROLE IS OF MAKING SURE WE MEET THESE BOOK ADOPTIONS.

BECAUSE WE CAN'T HAVE THE BOOK MATERIALS IF WE DON'T KNOW IF THEY ARE SUPPOSED TO HAVE.

THIS IS PROBABLY THE BIGGEST CHALLENGE AREA WE HAVE IDENTIFIED WE HAVE TO MAKE SURE HAPPENS.

IF WE GET THIS DONE WE HAVE TO PLAN AROUND FALL, WORKING FOR FALL WHEN THE MASSES COME AND MAKE SRE THAT WE HAVE ADJUSTED EVERYTHING THAT WE HAVE HAD AND PLAN FOR THAT LARGER CROWD COMING INTO THE FALL.

THIS IS EXCITING THOUGH.

I'M REALLY PROUD OF FOLLETT FOR STEPPING FORWARD.

THEY HAVE THE TECHNICAL EXPERTISE.

THEY HAVE TE ABILITY TIM TALKED ABOUT.

THEY HAVE BEEN DOING THIS FOR A WHILE.

SO THEY ARE GOING TO BE A GOOD PARTNER FOR US TO DO THIS WITH.

>> YOU SAID THE TUITION INCREASE WILL COME TO THE BOARD IN DECEMBER?

>> PRESENTER: WE HAVE IT FEBRUARY.

LATEST IS MARCH.

BUT PROBABLY WILL BRING IT FORWARD IN FEBRUARY.

>> AND WHEN WILL THE FOLLETT CONTRACT COME TO THE BOARD?

>> JOHN: I HOPE THE NOVEMBER BOARD BUT DON'T HOLD ME TO THAT YET.

I HAVE SOME IRONING OUT OF THINGS TO DO BUT THAT WOULD BE THE PLAN WE WOULD BE WORKING ON THAT TO BRING IT TO THE NOVEMBER BOARD.

QUESTIONS, COMMENTS? I WILL SAY WHEN I WENT TO GRADUATE SCHOOL, MOST OF THE STUDENTS WERE ON COMPANY REIMBURSEMENT PROGRAM.

COMPANIES DON'T PAY FOR BOOKS, THEY PAY FOR TUITION.

MY GRADUATE SCHOOL ROLLED BOOKS IN TUITION SO MY COMPANY WOULD PAY 80%.

SO THE CONCEPT OF ROLLING BOOKS INTO TUITION IS NOT -- I MEAN, I'M NOT THAT OLD.

IT WAS A WHILE AGO WHEN I WENT TO GRADUATE SCHOOL.

>> THAT'S THE WAY HIGH SCHOOLS WORK NOW.

STUDENTS, THEY LEAVE HIGH SCHOOL, BOOKS ARE INCLUDED, THEY GET TO US AND BOOKS ARE NOT INCLUDED.

>> I SUPPORT THE IDEA OF ROLLING BOOKS INTO TUITION.

THE PLATFORM AND ENTERPRISE DECISIONS.

THE AGGRESSIVENESS OF THE TIME LINE AND WHETHER WE WILL BE ABLE TO DELIVER A QUALITY EXPERIENCE TO TENS OF THOUSANDS OF STUDENTS, DAY ONE.

OR IF THERE'S A PHASED APPROACH.

>> JOHN: WE WILL GUARANTY IF WE AREN'T READY TO GO WE WON'T DO IT.

WE AREN'T GOING TO CREATE A BAD EXPERIENCE FOR STUDENTS.

WE DID TALK ABOUT, IS IT POSSIBLE TO PHASE IT? TO DO THAT WE WOULD HAVE TO PICK ONE COLLEGE AT A TIME.

THAT'S GOING TO BE DIFFICULT TO DO.

RICHLAND ALREADY LOOKED AT THE IMPACT OF THAT, WE HAVE DONE THAT ON THE SMALL SCALE BUT IT IS A CHALLENGE OF TRYING TO DO THAT GOING FORWARD.

>> I MAY BE OVER SIMPLIFYING BUT REALLY THEY ARE ALREADY DOING THIS.

IT'S ESSENTIALLY ALL IT IS, IS A BILLING ISSUE IF THEY PRE-PLAN THE BOOKS, PUT THE BOOKS IN A BAG AS OPPOSED TO

[00:50:02]

WALKING DOWN THE AISLES AND PICKING THEM UP YOURSELF.

>> JOHN: THEY ACTUALLY DO THAT NOW, THEY BAG THEM UP AND HAVE THEM READY FOR STUDENTS.

>> YOU COULD PRE-ORDER.

BECAUSE THEY DON'T DELIVER.

[B. Facility Improvement Plan Presenter: John Robertson]

LET'S MOVE ON, IF THAT'S OKAY WITH YOU.

LET'S TALK ABOUT THE FACILITY IMPROVEMENT PLAN.

TRUSTEE COMPTON ASKED WHEN I WAS GOING TO BRING THE DEFERRED MAINTENANCE BACK.

I REFER AS THE FACILITY IMPROVEMENT PLAN.

WE HAVE TALKED ABOUT IT BEING DEFERRED MAINTENANCE.

AS BY DEFINITION OF WHAT DEFERRED MAINTENANCE IS, IT SOUNDS LIKE YOU JUST DON'T DO ANYTHING.

WE HAVE BEEN DOING SINCE 2012 --

>> C. COMPTON: IT DOES SEEM --

>> JOHN: WE HAVE BEEN PUTTING MONEY FORWARD.

WE STARTED IN 2012 WITH A LIST OF $86 MILLION WORTH OF PROJECTS WE HAVE NOW JUST ABOUT FINISHED UP.

BUT IT'S NOT LIKE, BEFORE THEN, WE REALLY DIDN'T HAVE A WHOLE LOT OF ORGANIZED PLANS OF WHAT WE WANTED TO DO SO PRIOR TO 2012, PEOPLE DID AS DISTRICT FACILITIES WOULD RECOGNIZE, A THE COLLEGE DIRECTOR OF FACILITIES WOULD RECOGNIZE, WE WOULD PRODUCE THE LIST BUT NEVER REALLY GAVE THE MONEY TO DO ANYTHING WITH, NOW STARTING BACK IN 2012 THE BOARD AT THAT TIME SAID WE NEED TO START DOING SOMETHING WITH SETTING ASIDE, MANY PEOPLE CALL REPAIR AND RENOVATIONS FUNDS.

THEY CALL IT DEFERRED MAINTENANCE.

WE WILL LOOK AT WHAT WE HAVE.

WHAT THE DISTRICT FACILITIES DEPARTMENT HAS CONDUCTED AN AUDIT THROUGH THE COLLEGES DIRECTOR OF FACILITIES, AND ASKED THEM FOR ALL THE PROJECTS THEY HAVE CURRENTLY.

I WILL TELL YOU TIS IS A DYNAMIC LIST.

BECAUSE I WILL SLICE THIS A LITTLE BIT DIFFERENTLY.

THIS IS THE CAPITAL IMPROVEMENT PLAN BUT CURRENTLY WE HAVE A LIST OF $138 MILLION WORTH OF PROJECTS THE COLLEGES IDENTIFIED WE NEEDED TO DO.

I ASKED TO BREAK THEM DOWN.

I ASKED TO BREAK THEM DOWN FROM THE STANDPOINT OF WHAT DO YOU THINK.

>> C. COMPTON: ON PAGE FOUR, IT IDENTIFIES --

>> DISTRICT SERVICE CENTER, BILL J. PRIEST, WHICH HAS NO PROJECTS WHATSOEVER.

BUT IT'S A NON COLLEGE LOCATION, IF YOU WILL.

COLLEGES INCLUDE COMMUNITY CAMPUSES THEY HAVE, REALLY CENTRAL ADMINISTRATION LOCATIONS.

>> D. ZIMMERMANN: M.E.P.

>> MECHANICAL, ELECTRICAL AND PLUMBING.

>> I'M GOING TO STOP YOU A SECOND ON WHAT YOU SAID.

YOU SAID THIS IS NOT AN ASK BUT SAID THIS IS WHAT THE COLLEGES SAID THEY NEED TO DO.

>> CORRECT.

I ASK AT THIS POINT.

WE WILL COME BACK, WE DO THE BUDGET THIS SPRING.

THE ASK WILL BE IN THERE.

I WILL TALK ABOUT HOW I WOULD LIKE TO DIVIDE THIS $138 MILLION UP TO TRY TO DVELOP A PAY-AS-YOU-GO PLAN.

>> ONE OF THE THINGS WE WERE LOOKING AT IS ASKING THE COLLEGES WE NEED TO SART LOOKING AT WHAT CAN WE FUND AND WHAT DOES DSTRICT NEED TO FUND SO THEY CURRENTLY DO THIS.

THEY CURRENTLY USE SOME OPERATING BUDGET, USE FUND BALANCE.

THEY ARE TYPICALLY FOR PROJECTS, MAINTENANCE IN NATURE, REPAIRS, PAINTING, CARPET REPLACEMENT, ATHLETIC FACILITIES.

[00:55:24]

THEY ARE BEAUTIFICATION OR HOW TO MAKE THINGS LOOK PAINTING, SIDEWALKS, LANDSCAPING AND S ONTO MAKE THINGS LOOK BETTER.

HOWEVER, DEPENDING ON THE NATURE OF THE PROJECT, YOU COULD HAVE A SIDEWALK THAT IS A LIFE SAFETY ISSUE BECAUSE IT'S IN AN A.D.A. AREA THAT HAS A SINKHOLE IN IT.

PROJECTS COULD MOVE AROUND DEPENDING ON THEIR CLASSIFICATION OF WHAT THEY HAVE.

SO THEY DON'T END UP IN THE LIST.

I SENT YOU THE WHOLE LIST.

THIS DOES NOT INCLUDE BUILDING RENOVATIONS, OR REMODELINGS OR SO ON.

THAT WILL BE IN THE CAPITAL BUDGET.

SO COMING BACK WITH THIS, AND I'M NOT GOING TO HAVE YOU STARE AT THAT OR TALK ABOUT THIS, BUT THEY GAVE US THAT IDEA OF BREAKING THINGS DOWN BY THESE PRIORITIES ON WHAT THE COLLEGES WOULD FUND AND WHAT THE DISTRICT WOULD FUND.

AND THIS WAS ALSO IN THE BACKGROUND OF WHAT WE ARE GOING TO DO.

>> DID EACH COLLEGE SELF-SELECT?

>> YES.

>> SO HOW DO YOU KNOW IF IT WAS DONE UNIFORMLY?

>> JOHN: IT WASN'T A FIRST ATTEMPT.

EVENTUALLY WE WILL USE -- CODES.

THEY ARE MORE DETAILED THAN WHAT I CARE TO BRING TO THE BOARD.

BUT RIGHT NOW IT'S SIMPLIFICATION OF TRYING TO SAY, OF THIS AMOUNT TOTALLY, THERE'S AMOST $20 MILLION DEFINED AS CRITICAL AND $86 MILLION NEEDING TO MAINTAIN THE BUILDINGS AND STRUCTURES.

SO THERE'S A LOT THAT ARE IN THERE, OUT OF THAT $138 MILLION THAT WE NEED TO GET STARTED ON RIGHT AWAY.

I'LL REMIND YOU OF OUR NOW COPY RIGHTED.

I'VE CHANGED IT UP, THE FACILITY IMPROVEMENT PLAN, WE ARE REALLY GOING TO THE OPERATING BUDGET PART.

THE CAPITAL BUDGET AS WE DEVELOP GOES IN THE FACILITY PLANNING PART WE ARE DEALING WITH.

SO IT'S JUST TO GIVE YOU AN IDEA OF HOW WE BREAK THINGS UP.

BECAUSE WE ARE GOING ON A PAY-AS-YOU-GO PLAN.

IT WILL BE AN OPERATING DECISION ON THIS DEFERRED MAINTENANCE.

WHAT I'M PROPOSING AND WE'RE NOT THERE YET.

WE AREN'T INTO BUDGETING FY '20 YET.

BUT IF YOU TOOK 5% OF THE COLLEGE'S BUDGET ALLOCATION IT EQUALS $18 MILLION.

DISTRICT FUNDING IS CURRENTLY $18 MILLION.

AND IF WE LOOK AT THAT TOTALLY, WE COULD HAVE AN ABILITY TO SET ASIDE $36 MILLION A YEAR.

WE MIGHT NOT GT THERE IN F.Y.

'20.

BUT YOU REMEMBER WHEN WE TALKED ABOUT THIS BEFORE, WE WERE SOMEWHERE BETWEEN $24-$36 MILLION A YEAR BASED ON REPLACEMENT COSTS WE NEED TO SET ASIDE FOR DEFERRED MAINTENANCE PROGRAMS AND THAT'S WHAT I'M TRYING TO SET UP HERE.

IT PROBABLY WON'T END UP BEING BUT SOMETHING WE ARE GING TO - MOVE TOWARDS AS T HOW DO WE DO THIS AND SHARE BETWEEN DISTRICT AND COLLEGE MAY CHANGE OVER TIME.

THERE ARE CERTAIN AREAS WE MAY NEED TO GO IN AND HELP THE COLLEGE FASTER THAN SOME OF THE OTHERS THAT WE HAVE.

SO WE ARE GOING TO WORK ON THAT BUT THIS IS HOW WHEN WE START PUTTING THE F.Y. '20 BUDGET TOGETHER WHICH IS ONLY A COUPLE MONTHS OFF, WE WILL BE SHOWING YOU HOW THE COLLEGES ARE USING THEIR MONEY TO FUND SOME OF THIS AND HOW THE DISTRICT IS USING THAT $18 MILLION WE SET ASIDE EACH YEAR TO BE ABLE TO SHOW YOU THE PROJECTS THAT WE ARE DOING AND WHAT WE ARE IMPROVING.

IT DOESN'T LIKE ME.

THIS WILL CHANGE.

WE NEED TO WORK ON BUILDING THE INTER-DEPENDENCIES WITH THE CAPITAL BUDGETS.

[01:00:01]

IF YOU REMEMBER WHEN THE COLLEGES GAVE THEIR MASTER PLAN PRESENTATIONS, MANY WERE REMODELING BUILDING B.C. AND G.

I NEED TO KNOW WHAT THE DEFERRED MAINTENANCE ITEMS ARE ON BUILDINGS B.C. AND G.

IF WE DO A REMODELING WE MAY OR MAY NOT TO DO THOSE DEFERRED MAINTENANCE ITEMS. SO THERE'S THAT TRADE-OFF WE NEED TO DO AND INTERRELATIONSHIPS OF WHAT WE HAVE.

THAT'S WHY I SAY THIS $138 MILLION COULD VERY WELL CHANGE.

IF WE ARE GOING TO DO A RENOVATION, I MIGHT TAKE CARE OF THE AIR HANDLERS AT THE SAME TIME I'M DOING THAT RENOVATION.

OR THAT MAY BE BUILT INTO THAT MONEY.

SO WE NEED TO WATCH WHAT WE ARE DOING AND BE ABLE TO DEVELOP THOSE.

THIS WILL BECOME AN ANNUAL PLAN.

WHICH PROJECTS WE COMPLETED, WHICH WE HAVEN'T AND WHEN WE NEED TO COME BACK TO YOU AND SAY WE HAVE CHANGED THE PRIORITIES OF SOME OF THESE PROJECTS.

>> JL S. WILLIAMS: THEY ARE CONTINUALLY BUILDING --

>> JOHN: SORRY?

>> JL S. WILLIAMS:

>> JOHN: WE DO HAVE SOME CONTINGENCY BUILT ON THAT.

WHAT WE DON'T HAVE ENOUGH OF IS COST ESCALATION.

WE PUT IT IN THERE FOR ONE YEAR BUT SOME OF THESE PROJECTS MAY NOT HAPPEN FOR FOUR YEARS.

SO THAT'S ANOTHER REASON THIS $138 MILLION COULD CHANGE.

I HAVE ONE YEAR OF A COST INCREASE IN THERE.

AND WE HAVEN'T LISTED TEM BY PRIORITIES OF PHASING THEM IN OVER THIS FIVE-YEAR ROLLING BUDGET.

SO ONCE WE DEVELOP THE FIVE-YEAR ROLLING BUDGET, THE ONES WE DO NEXT YEAR MAY ONLY HAVE A 10% CONTINGENCY FOR COST INCREASE.

BUT YEAR TWO, THREE, FOUR AND FIVE.

AS YOU MOVE CLOSER TO DEVELOPING THE CURRENT YEAR YOU WILL ADJUST THOSE FIGURES TO WHAT YOU THINK THEY ACTUALLY ARE BUT TO BUILD THOSE NUMBERS IN THERE, IT'S NOT GOOD FINANCIAL PLANNING TO SIT HERE AND THINK I'M GOING TO GET $20-$25 FOR 2019 PRICES.

SO AS WE BUILD THOSE FIVE-YEAR PLANS WE WILL HAVE TO BUILD IN THOSE FACTORS.

BUT THEN AS WE ROLL FORWARD WE WILL UPDATE THEM WITH ACCURATE COSTS.

>> A COUPLE QUESTIONS JUST ON FINANCIAL PLANNING THEORY AND THE APPROACH YOU ARE BRINGING TO THIS BOARD.

I GUESS THE NEXT BUDGET CYCLE WE WILL SEE A CAPITAL BUDGET AND OPERATING BUDGET.

>> JOHN: AND FACILITY IMPROVEMENT.

>> WITH THE CAPITAL AND OPERATING BUDGET WE WILL HAVE REVENUES AND EXPENDITURES.

WHY RETAIN THE FACILITY IMPROVEMENT COMPONENTS OF EXPENDITURES IN THE OPERATING BUDGET.

WHY WOULDN'T WE PUT THAT IN THE CAPITAL BUDGET? ESPECIALLY GIVEN THE RELATIONSHIP YOU DESCRIBED BETWEEN DEFERRED MAINTENANCE PROJECTS AND WHAT WE MIGHT DO IN TERMS OF CAPITAL IMPROVEMENTS.

>> JOHN: WHAT I DIDN'T DRAW IS THE INTER-DEPENDENCY OF THE TWO BOXES.

THERE'S AN ARROW THAT GES BACK AND FORTH BETWEEN THEM.

BUT TO DO A PAY-AS-YOU-GO PLAN WE WILL USE OPERATING REVENUES TO PAY FOR THE DEFERRED MAINTENANCE OF THE FACILITY IMPROVEMENT PLAN.

IT IS PART OF THE OPERATING BUDGET.

WE'RE GOING TO USE OPERATING FUNDS.

CAPITAL BUDGETS MAY HAVE AN OPERATING COMPONENT, OR IT MAY ALL BE DEBT.

WE DON'T KNOW THAT YET.

SO AS WE BUILD THAT AND WE COME FORWARD WE WILL MAKE A PROPOSAL AT THE SAME TIME OF HOW WE ARE GOING TO AFFORD BOTH OF THESE PROJECTS.

>> BUT I THINK WHAT YOU ARE ASKING THERE, THE ONLY TRUE DIFFERENTIATION ON THAT IS THE SOURCE OF THE DOLLARS.

YOU ARE BASING THAT ON SOURCE, NOT NECESSARILY THE PROJECT.

>> NEW PROJECTS AND DEFERRED MAINTENANCE, I DON'T UNDERSTAND WHY WE WOULDN'T HAVE DEFERRED MAINTENANCE IN THE CAPITAL BUDGET IF WE ARE TRYING TO CREATE A HOLISTIC VIEW OF OUR CAPITAL EXPENDITURES.

WE COULD HAVE MORE THAN ONE REVENUE SOURCE IN THE CAPITAL BUDGET.

>> JOHN: AND WE PROBABLY WILL.

WHEN WE DEVELOPED THE CAPITAL BUDGET THERE WILL BE TAX

[01:05:02]

CREDITS AND OTHER WAYS OF REDUCING THE DBT THAT WE TAKE ON.

BUT I'M VIEWING, THE FACILITY IMPROVEMENT PLAN IS A TRUE IMPROVEMENT COST.

MAINTENANCE, CERTAIN THINGS DOING WITH BUILDINGS TO KEEP THEM UP-TO-DATE.

ROOFS TYPICALLY HAVE TO BE REPLACED EVERY YEAR, THAT'S PROBABLY ABOUT THEIR LIFE CYCLE.

WE GET 40 IN SOME CASES.

BUT THERE IS A POINT W NEED TO LOOK WHERE WE ARE DOING THIS.

I DON'T KNOW WHAT THE T.A.B.

WILL DO, I KNOW TUITION IS GOING UP BECAUSE WE ARE HAVING ENROLLMENT INCREASE AND WE ARE TALKING ABOUT -- YOU KNOW.

THIS NEEDS TO BE DEFINED BY THE SOURCE OF THE REVENUES.

WHICH IN THIS CASE WE ARE TAKING TAX MONEY TO MAINTAIN FACILITIES AND KEEP THEM UP TO A LEVEL OF IMPROVEMENT.

>> C. COMPTON: RICHLAND, EASTFIELD AND BROOKHAVEN, TWO OF THE THREE OF THEM.

ARE THOSE ENROLLMENTS?

>> JOHN: RICHLAND IS THE LARGEST.

BUT I WOULD HAVE TO CHECK THE NUMBERS.

THE MOUNTAINVIEW HAS BEEN COMING IN VERY STRONG IN THE PAST COUPLE YEARS.

EASTFIELD HAS BEEN UP THERE.

ENROLLMENTS DROPPED OFF A LITTLE BIT.

SAME THING WITH EL CENTRO.

BUT THERE'S KIND OF LIKE A GROUP OF NORTH LAKE, EL CENTRO, NORTHFIELD, EAST FIELD, BROOKHAVEN THAT ARE CLOSE TOGETHER PROBABLY WITHIN 2,000 STUDENTS OF EACH OTHER.

>> C. COMPTON: I'M KIND OF SMILING HERE, IF THIS IS ME PERSONALLY AND I WAS LOOKING AT THIS, I WOULD SAY -- BROOKHAVEN, EASTFIELD AND RICHLAND AND -- LAKE RATHER THAN LOOKING AT THIS KIND OF MONEY IN DEFERRED MAINTENANCE.

>> JOHN: RIGHT.

IT WAS BROUGHT UP EARLIER, TALKING ABOUT STANDARDIZATION OF THE TWO.

WE HAVE NOT DONE THAT.

CEDAR VALLEY DID A VERY GOOD JOB IN THEIR MASTER PLAN ABOUT LOOKING AT THEIR FACILITY CONDITION INDEX.

AND PART OF WHAT WE WANT TO DO IS NOT ALL AT ONCE BUT OVER TIME WE WANT TO GET PROFESSIONALS LOOKING AT THIS.

RIGHT NOW WE RELY ON OUR MAINTENANCE DIRECTOR OF FACILITIES WHO DO THEIR BEST BEING ABLE TO SEE.

BUT SOMETIMES LIKE WE HAD WHEN WE BROUGHT THE MASTER PLAN ARCHITECTS IN, THEY POINTED OUT THINGS WE DIDN'T SEE.

BECAUSE I'S SOMEBODY WITH DIFFERENT COLORED GLASSES LOOKING AT IT.

SO THERE'S SOME STANDARDIZATION WE HAVE TO GET IN BUT PART O IT IS, YOU ARE VISITING THE COLLEGES, WE HAVE DIFFERENT LEVELS OF IMPROVEMENTS ACROSS THE DISTRICT.

>> D. ZIMMERMANN: WELL, WITH RICHLAND HAVING, WHAT, 14-YEAR-OLD TEMPORARY BUILDINGS, HOW MUCH OF THE TEMPORARY BUILDING BUSINESS IS WRAPPED INTO THIS $32 MILLION?

>> JOHN: I DON'T KNOW.

>> D. ZIMMERMANN: SEE, THAT --

>> JOHN: I DON'T KNOW IF RICHLAND HAS ANYTHING ON PORTABLE BUILDINGS THAT IS ON DEFERRED MAINTENANCE.

I WOULD HAVE TO LOOK TO BE SURE.

BUT THEY D HAVE IN THEIR MASTER PLAN, IMPROVEMENTS OR RENOVATIONS OR REPLACEMENTS SO IT IS IN THEIR CAPITAL MASTER PLAN.

>> D. ZIMMERMANN: WE SHOULD KNOW THE DEFINITION OF TEMPORARY.

>> JOHN: WELL, I LEARNED IF YOU WANT TO DO TEMPORARY, YOU LEASE THEM, BECAUSE THAT MAKES A DETERMINATION DATE.

>> D. ZIMMERMANN: YOU HAVE TO GIVE THEM BACK, YEAH.

>> JOHN: WE HAVE A NETWORK OF THESE FACILITIES SO WE ARE LOOKING AT THEM AND BRING ALL THE LOCATIONS TO A SIMILAR STATE OF IMPROVEMENT.

I THINK YOU NOTICE AS YOU GO ON YOUR TOURS W HAVE DIFFERENT LEVELS OF WHAT WE HAVE TO DO.

SO THAT'S PART OF WHAT WE HAVE TO DEAL WITH.

THE VICE PRESIDENTS OF BUSINESS ARE NOT REAL HAPPY WITH ME BECAUSE THEY TELL ME JOHN, YOU USED TO GIVE ME AN ALLOCATION

[01:10:02]

AND WE DID WHAT WE WANT AND NOW YOU ARE PUTTING STIPULATIONS HOW MUCH TO USE FOR DEFERRED MAINTENANCE AND SO ON.

WE NEED TO WORK TOGETHER WITH THE COLLEGES AND PRESIDENTS TO MAKE SURE WE ARE FUNDING APPROPRIATELY.

BECAUSE I CAN'T AFFORD EVERYTHING.

SO WE HAVE GOT TO BE ABLE TO FIND THAT LEVEL OF WHAT THEY ARE SUPPOSED TO DO AND WHAT WE ARE SUPPOSED TO DO.

>> C. COMPTON: DO WE HAVE CURRENT APPRAISALS ON THE PROPERTIES?

>> JOHN: I'M SORRY?

>> C. COMPTON: DO YOU HAVE CURRENT APPRAISALS.

>> JOHN: ARE YOU TALKING ABOUT THE LAND?

>> C. COMPTON: I'M TALKING ABOUT THE WHOLE SHEBANG ON CAMPUS.

>> JOHN: NOT WHAT I WOULD CALL AN APPRAISAL.

WHEN WE WERE LOOKING AT HOW MUCH DEFERRED MAINTENANCE WE WERE SETTING ASIDE WE USED COST OF $300 PER SQUARE FOOT AND USED THAT BY LOCATION.

THAT'S PRETTY MUCH WHAT CONSTRUCTION COSTS.

THAT DIDN'T INCLUDE FURNITURE OR I.T. EQUIPMENT.

IT WAS REALLY JUST $300 TO TALK ABOUT WHAT IF WE HAD TO BUILD IT AGAIN.

>> C. COMPTON: I DON'T REALLY REMEMBER BUT

>> JOHN: I'M SORRY?

>> C. COMPTON: ARE WE ON THE BOOKS AT THE APPRAISAL DISTRICT?

>> JOHN: NO, MA'AM.

>> C. COMPTON: CITIES LOOKING THROUGH THE DATABASE THAT HAVE LOTS OF STUFF LIKE THAT --

>> JOHN: SOME VACANT LOTS WILL BE IN THERE WITH A VALUE, IT'S JUST NOT CURRENT.

>> C. COMPTON: IT'S NOT WHAT?

>> JOHN: CURRENT.

IT'S NOT UP-TO-DATE.

IT'S NOT A VALID AMOUNT I WOULD USE.

>> C. COMPTON: SO THEY WOULDN'T GIVE US A VALATION ON THE TAX ROLLS.

>> JOHN: W ARE EXEMPT.

THEY SPEND APPRAISALS PEOPLE GOING ELSEWHERE, NOT US.

>> JUST A QUICK OBSERVATION.

HOW ARE WE ABLE TO DETERMINE THE AMOUNT OF MONEY TO BUDGET IN THE DEFERRED MAINTENANCE AREA WHEN WE DON'T REALLY KNOW WHICH MAY END UP BEING CAPITAL PROJECTS THAT REQUIRE OUT OF THE ROOF REPAIR, DEPENDS WHERE THE THRESHOLD IS, MOVING IT TO ONE TO THE OTHER.

>> JOHN: THAT'S WHY THEY HAVE TO BE INTEGRATED, LOOKING AT THEM AT THE SAME TIME.

I WANT TO SAY THEY ARE BOTH IN BOTH PLACES.

BUT WHAT WE HAVE TYPICALLY IN THE CAPITAL BUDGET MASTER PLAN, I WILL DO A REMODELING ON THIS CAMPUS.

I HAVE ALSO IDENTIFIED I NEED TO REPLACE THE BOILERS AND CHILLERS ON THE DEFERRED MAINTENANCE.

IF WE DECIDE THAT BUBBLES UP IN THE CAPITAL BUDGET PROCESS OVER THE NXT X YEARS WE WILL DO THAT RENOVATION, WE SHOULDN'T NECESSARILY BE DOING THIS.

ARE WE GOING TO MAKE SURE IT'S BUILT INTO WHAT RENOVATIONS WE ARE GOING TO DO OVER HERE.

IT'S BUILDING THE INTERDEPENDENCIES AND MAKING SURE WE ARE NOT REALLY COST AVOIDANCE BUT WE KNOW.

WE AREN'T GOING TO HAVE TO SPEND, ALL THIS $138 MILLION OVER HERE BECAUSE WE WILL BE SPENDING ON THE CAPITAL BUDGET SIDE.

>> D. ZIMMERMANN: WE HAVE BEEN PAST THE PYLONS ON THE FREEWAY FOR YEARS AND YEARS AND YEARS.

THEY FINALLY CLEAN OFF EVERYTHING, IT'S READY TO GO AND THE PYLONS COME BACK IN SIX MONTHS, BECAUSE THEY HAVE TO RIP UP SOMETHING ELSE.

>> WE DON'T KEEP TRACK OF APPRECIATION BUT --

>> JOHN: WE DO.

>> HOW COULD YOU BOARD DISCERN AT A HIGH LEVEL.

>> JOHN: IT'S REALLY FOR THE COMPREHENSIVE ANNUAL REPORT, OUR LIVES OF OUR BUILDING OTHER IMPROVEMENTS, INFRASTRUCTURE IMPROVEMENTS ARE 20, EQUIPMENT IS TEN.

THAT HAS SOMETHING TO DO WITH BUILDING LIFE CYCLE COSTS.

ONE OF THE THINGS WE HAVE GOT TO WORK WITH ON DIRECTOR OF FACILITIES IS MAKING SURE W HAVE THOSE STANDARDS.

A BOILER WILL BE REPLACED WITHIN 20 YEARS.

BUT PART OF THE REASON TO DEVELOP THAT FIVE YEAR ROLLING, IF WE LOK AT ONE YEAR AND SAY WE HAVE TWO ROOF REPAIRS AND LOOK NEXT YEAR AND THERE'S TWO MORE WE MIGHT WANT TO MOVE SOME OF THOSE UP AND DO ALL FOUR AT THE SAME TIME FROM A PRICING STANDPOINT.

WE MAY HAVE CERTAIN PROJECTS WE

[01:15:02]

WANT TO COMBINE BECAUSE WE CAN GET CERTAIN PRICES OR WE KNOW PRICES WILL GO UP SO WE WANT TO DO THEM NOW.

THAT'S PART OF WHY WE DON'T REALLY HAVE THIS ROLLING ACTIVE LIVE DATABASE THAT WE WILL BE WORKING ON.

WE HAVE A SPREADSHEET.

WE HAVE SOMETHING TO TELL IT AND FACILITY DIRECTORS, AS THEY FIND THINGS CAN PUT IT IN THE SYSTEM.

>> IS THE REASON WE ARE KEEPING DEFERRED MAINTENANCE IN THE OPERATING BUDGET TO ALLOW TO MAINTAIN DSCRETIONARY USE OF FUND BALANCES?

>> NO, SIR.

IT'S REALLY JOHN DIDN'T WANT TO TAKE OUT DEBT ON DEFERRED MAINTENANCE WHEN QUITE FRANKLY I HAD THE BELIEF WE OUGHT TO USE THE PAY AS YOU GO PLAN ON DEFERRED MAINTENANCE.

MOST ENTITIES THAT HAVE A GOOD BUDGET PLAN HAVE AN ALLOTMENT FOR WHAT THEY CALL REPAIR AND RENOVATIONS.

YOU SET ASIDE MONEY IN YOUR BUDGET TO TAKE CARE OF YOUR FACILITIES.

THAT'S WHAT WE STARTED IN 2012.

IT'S THE FIRST TIME WE DID.

I WILL SAY IT'S NOT ENOUGH.

WE KNEW THAT AT THE TIME BUT THAT'S WHAT WE STARTED WITH.

WE HAVE TO DECIDE OF OUR ELMS, THIS BOARD WORKING TOGETHER WITH US, NEEDS TO DECIDE HOW MUCH WE SHOULD SET ASIDE.

I DON'T KNOW IF I'M GOING TO GET TO $24 OF $36 MILLION IN THE NEXT YEAR OR TWO.

BUT THAT'S WHAT I'M LOOKING AT THAT SAYS THAT'S WHAT I NEED TO GET TO WITH THE AMOUNT OF FACILITIES WE HAVE.

5 MILLION SQUARE FEET.

>> C. COMPTON: THE BOND RATING AGENCY, THEY LOOK AT THE TOTAL VALUE ONE OF THE THINGS THEY CONSIDERED ALONG WITH REVENUE STREAMS AND ALL THAT.

HOW ARE THEY RATING US?

>> JOHN: THEY LOOK AT AGE OF FACILITIES AND HOW OLD THEY ARE.

BUT WHAT THEY ARE MORE INTERESTED IN, JUST LIKE I SAID, THAT YOU DO HAVE AN ALLOTMENT YOU ARE SETTING ASIDE TO TAKE CARE OF YOUR FACILITIES THAT YOU ARE DOING SOMETHING IN YOUR OERATING BUDGE -- BUDGET TO TAKE CARE OF THOSE.

IF YOU HAVE THE INCOME TO SUPPORT THE DEBT SERVICE, THAT'S MORE OF WHAT THEY LOOK AT THAN ANYTHING ELSE.

>> WE ARE ALMOST OUT OF TIME BUT THERE ARE TWO OTHER THINGS WE WANT TO SPEAK TO.

[1) Order Authorizing the Issuance of General Obligation Refunding Bonds]

>> JOHN: W HAVE DONE THIS BEFORE, WE AE DOING IT AGAIN, WE JUST CAN'T SEEM TO STAY OUT OF IT.

THIS I THE LAST OF THE 2010 BONDS AND ALL WE HAVE ISSUED TO THIS POINT.

THIS IS THE LAST REFUNDING WE CAN DO ON THESE BONDS.

WE HAD BUILT IT INTO THE BUDGET AND TOLD YOU ABOUT IT WHEN WE WERE DEVELOPING THE BUDGET WE WERE GOING TO BE BRINGING FORWARD THAT LAST REFUNDING.

IT'S NOT AS MUCH MONEY AS WHAT WE HAVE BEEN ABLE TO SAVE BEFORE BUT IT'S THE LAST $33-$34 MILLION WORTH OF REFUNDING WE CAN DO ON THE 2010 BONDS.

THERE ARE SOME OTHERS THAT MAY BE COMING UP BUT THEY HAVE ALREADY BEEN REFUNDED BEFORE.

I MY NOT GET, THERE MAY NOT BE THE ABILITY TO GO OUT AND DO SOME RATE FUNDING.

WE WILL JUST HAVE TO WAIT UNTIL THOSE ARE AVAILABLE.

WE WILL PROBABLY DO SOME THINGS DIFFERENT ON THIS.

WE TALKED ABOUT DOING SOME ISSUES WITH ONE AND TWO YEAR CALLS ON THEM.

WHICH ALLOWS US TO BASICALLY -- BONDS EARLY AND NOT GO BACK IN THE MARKETPLACE.

WE CAN JUST CALL THEM AND PAY THEM OFF.

WE WILL PROBABLY LOOK AT DOING THIS THROUGH A PRIVATE PLACEMENT AS OPPOSED TO A COMPETITIVE BID.

PRIVATE PLACEMENT, PEOPLE LKE US SO MUCH, WE CAN JUST GO TO A BANK AND SAY YEAH I WILL BUY THEM OFF AND HERE IS YOUR PRICE.

AND WE CAN USUALLY GET A BETTER PRICE THAN IN THE MARKETPLACE.

SO THAT'S A POSSIBILITY AT THIS TIME.

>> W. JAMESON: JOHN, WHAT IS THE NET SAVINGS?

>> JOHN: ON THIS ABOUT $10 MILLION.

>> YOU ARE WELCOME TO COME BACK ANY TIME YOU WANT.

>> JOHN: I MAY BE JUST ABOUT DONE, THAT'S WHY I'M PREFACING

[2) Approval of Assignment of Ground Lease for the Four Seasons Resort Property Adjacent to North Lake College to Extell Acquisitions, LLC]

[01:20:01]

THE NEXT ROUND OF THINGS THAT COME AVAILABLE MAY NOT BE A LOT, MAY NOT BE WORTH IT.

WE HAVE BEEN WORKING -- WITH A NEW GROUP AND THE CRRENT FOUR SEASONS GROUP.

THEY ARE SELLING THE LAS COLINAS HOTEL, OR FOUR SEASONS HOTEL AND GOLF COURSE TO A NEW PARTNER, OR TO A NEW FIRM THAT IS CALLED EXTELL DEVELOPMENT CORPORATION.

THEY ARE OUT IN NEW YORK.

WE HAVE DONE OUR BACKGROUND INVESTIGATION ON THEM.

THEY ARE GOING TO CREATE AN L.L.C. TO BUY ALL THIS WHICH THOSE DEVELOPMENT COMPANIES DO AND WE ARE LOOKING AT THIS ESTOPPEL AGREEMENT WHICH JUST SPEAKS TO THE OWNERSHIP, I'M SPEAKING OUT OF MY AREA HERE THE LEASE TERMS DON'T CHANGE.

WE STILL HAVE THE GROUND LEASE.

EVERYTHING STAYS THE SAME.

THE PAYMENTS STAY THE SAME.

WE'RE NOT NEGOTIATING CURRENTLY GOES THROUGH 2036.

>> THAT'S CORRECT.

THEY ARE ASSUMING ALL THE OBLIGATIONS OF THE CURRENT LESSEE, JOHN SATISFIED HIMSELF AS TO THE CURRENT --

>> C. COMPTON:

>> ROB: I KNOW.

I OPENED THE DOOR.

>> START THE TIMER.

>> I COULD NOT SIT STILL ANY LONGER.

WE HAVE SATISFIED OURSELVES AND JOHN HAS, IT'S A RATHER PERFUNCTORY TRANSACTION FROM A REAL ESTATE STANDPOINT.

>> JOHN: THERE'S NO CHANGE IN THE LEASE BUT SINCE IT'S A NEW PARTY.

>> C. COMPTON: HOW ABOUT THE L.L.C.

I DON'T WANT THOSE SCANDALS.

>> JOHN: DEVELOPMENT COMPANIES WHEN THEY DO THINGS LIKE THIS, THEY FORM INDIVIDUAL L.L.C.'S BECAUSE IT'S THE EASY WAY TO SELL THEM OFF.

THEY ARE IN THE BUSINESS OF TURNING THESE THINGS.

HOTEL PROPERTIES AND THINGS LIKE THAT.

THE GOOD NEWS ABOUT WHAT THIS FIRM WILL DO, THEY ARE PUTTING SIZABLE INVESTMENT OF $1 MILLION PLUS IN THE HOTEL AND IMPROVING THE HOTEL.

>> C. COMPTON: DO THEY COME TO YOU? OR THE HOTEL?

>> JOHN: THEY DON'T REALLY COME TO US.

THE CURRENT PARTNERSHIP IS AN INVESTMENT FIRM DEAL.

>> C. COMPTON: AND THEY ARE SELLING THEIR LEASE.

>> JOHN: THEY ARE SELLING THEIR WHOLE HOTEL.

THEY BOUGHT IT YEARS AGO WHEN IT WAS IN SOME DEPRESSED PRICES.

THEY HELD ONTO IT.

THEY ARE ASSET MANAGERS.

THEY HAVE HAD IT ON THE MARKET A WHILE.

THEY WERE TRYING TO NEGOTIATE AN EXTENSION WITH US BUT THEY DIDN'T LIKE THE TERMS ROB AND I CAME UP WITH, SO THEY SOLD IT ANYWAY.

>> WHY DOES THE CONCEPT OF ESTOPPEL ENTER INTO THIS, AS A CONDITION OF TRANSACTION.

>> ROB: WE SIGN A CERTIFICATE THEY ARE CURRENT ON THEIR OBLIGATIONS TO ALLOW THEM TO FINALIZE THE TRANSACTION WTH THE SALE ATHND TRANSFER OF THE HOLE TELL.

-- HOTEL.

WE HAVE BEEN PAID IN FULL, CURRENT UNDER THE LEASE, THEY AREN'T IN BREECH OF THE LEASE AGREEMENT.

SO THEY HAVE CONFIDENCE IN BUYING SOMETHING THAT'S NOT IN ARREARS.

>> QUESTION ON THOSE ITEMS?

>> JL S. WILLIAMS: I THINK I HAVE A QUESTION.

YOU COVERED WHO HELPS YOU?

>> JOHN: ROB.

>> JL S. WILLIAMS: WHO IN YOUR DEPARTMENT?

>> JOHN: ROB.

ONE OF THE THINGS, THAT'S WHY I WANTED TO INTRODUCE SOME PEOPLE I HADN'T SEEN BEFORE, TALKING ABOUT THE FOLLETT PLAN.

[01:25:25]

WE ENLISTED A TEAM TO TRY TO WORK WITH.

THERE'S QUITE A FEW PEOPLE.

>>

>> JL S. WILLIAMS: EVERYBODY CAN HELP.

ROB HAS MORE.

WHO IS YOUR POINT PERSON?

>> JOHN: ROB.

I USE TISCAL A LOT.

CLYDE PORTER JUST RETIRED.

I HAVE TO LOOK AT THAT REPLACEMENT.

I JST HIRED A NEW DIRECTOR.

TISKA HAS THE TAX AND BOND INFORMATION.

KEEPS OUR BOOKS IN LINE.

PRETTY GOOD TEAM.

I'M WORKING ON THAT.

>> JL S. WILLIAMS: YOU ARE A HANDS ON PERSON BUT GET WORRIED WHEN THERE'S A TON THERE AND WE HAVE SO MUCH AHEAD OF US.

>> JOHN: I'M SPREADING THE WEALTH, TRUSTEE WILLIAMS THAT THERE ARE OTHERS.

THE GOOD NEWS IS THE VOLUNTEERS ARE JUST COMING FORWARD.

THINGS LIKE THIS FOLLETT, ALL ACCESS LEARNING MATERIAL.

FACULTY, DEANS.

THIS DISTRICT, WE ARE PUTTING SOMETHING IN.

STUDENT FOCUSED.

EVERYBODY GETS BEHIND IT.

IT'S IMPRESSIVE.

THAT HAPPENED WHEN WE DID DART.

THEY REALIZED IT WAS THE STUDENTS WHO WERE THE BENEFICIARY OF THE PROGRAM.

PEOPLE WILL GET BEHIND ON THIS.

I HAVE A HOLE T FILL WITH MY FACILITIES DIRECTOR TO WORK ON.

BUT RIGHT NOW, I'VE GOT GOOD PEOPLE IN GOOD PLACES.

>> JOE, WHAT WOULD BE YOUR COMMENT?

>> I HEAR WHERE YOU ARE GOING WITH IT.

I THINK THAT'S ON MY MIND AS WELL AS WE ARE ALWAYS LOOKING TO THE FUTURE.

WE ARE TAKING CARE OF A LOT OF ISSUES RIGHT NOW.

AND FRANKLY, PROBABLY THINKING DIFFERENTLY ABOUT SOME OF THE LONG-TERM TYPES OF TALENT AND SKILLS THAT WE NEED THAT WE MAYBE HAVE IN THE PAST AS WELL.

>> JOHN: I'M SURE I FORGOT SOMEBODY HERE TODAY, AND I APOLOGIZE FOR THAT.

BUT ANNA AND I WORK TGETHER AND CHEMENE.

PART IS HOW MUCH I CAN GET THIS OUT OF HERE AND INTO SOMEBODY ELSE.

I'M TRYING AS HARD AS I CAN.

>> THE LEVEL OF INTERNAL COLLABORATION TO PULL OFF SOME OF THE STRATEGIES YOU ARE BRINGING TO THIS BOARD IS ENORMOUS.

I THINK TO SONNY'S POINT, THANKS TO YOU AND CHANCELLOR, AND ROB, WE ARE PROUD OF YOU AND WHAT YOU ARE DOING.

IF THERE AREN'T ANY OTHER COMMENTS OR QUESTIONS, THE FINANCE COMMITTEE WILL ADJOURN.

>> C.

* This transcript was compiled from uncorrected Closed Captioning.