MINUTES OF THE REGULAR MEETING OF THE BOARD OF … · Board in closed sessionto conduct the termination hearing at the request of Ms. Cynthia Gilliam in accordance with Section 551.001

MINUTES OF THE REGULAR MEETING OF THE BOARD OF TRUSTEES

INCLUDING PUBLIC HEARING

2016-2017 PROPSED BUDGETS LONE STAR COLLEGE SYSTEM

TRAINING AND DEVELOPMENT CENTER BOARD ROOM 5000 RESEARCH FOREST DRIVE

THE WOODLANDS, TEXAS 77381-4356 August 4, 2016

6:00 p.m.

PRESENT: Ms. Linda Good, Chair Dr. Kyle Scott, Vice-Chair Dr. Ron Trowbridge, Secretary Dr. Alton Smith, Assistant Secretary Dr. David Holsey Mr. David Vogt Mr. Ken E. Lloyd Mr. Bob Wolfe Mr. Art Murillo

REGULAR MEETING

I. CALL TO ORDER: Ms. Good called the workshop and regular meeting of the Board of Trustees to order at 6:00 p.m. after determining that a quorum was present.

II. PLEDGE OF ALLEGIANCE: Dr. Trowbridge led the Board and guests in reciting thePledge of Allegiance.

III. CERTIFICATION OF THE POSTING OF THE NOTICE OF THE REGULARMEETING AND NOTICE OF THE PUBLIC HEARING: Chancellor Head confirmedthat the Notices for the regular meeting and public hearing had been properly posted. Noaction was required. A copy is attached as Exhibit “A” and Exhibit “B”.

IV. PUBLIC HEARING – 2016-2017 PROPOSED BUDGETS: Dr. Head presented anoverview of the recommended budgets with total operating and auxiliary funds of$347.662M. The proposed budget includes a $2 per credit hour increase in tuition, $4 percredit hour increase in differential fees, 20 new full-time faculty, 2% increase for full-timeemployees (minimum of $750), $2 per contact hour increase for adjunct faculty and 2%increase for part-time staff.

V. CITIZEN COMMENTS: Mr. John Burghduff representing the AFT addressed the boardin support of the budget on three items: the 2% COLA for full-time employees, $2/houradjunct pay and the authority to hire 20 new faculty members.

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VI. ADJOURNMENT OF PUBLIC HEARING: There being no further discussion the

public hearing was adjourned at 6:13 p.m.

VII. RECONVENE REGULAR MEETING: The regular meeting was reconvened at 6:14 p.m. Mr. Vogt entered the meeting at 6:14 p.m.

VIII. TERMINATION HEARING FOR VICE CHANCELLOR OF FINANCE AND ADMINISTRATION CYNTHIA GILLIAM: At 6:16 p.m. Ms. Good convened the Board in closed session to conduct the termination hearing at the request of Ms. Cynthia Gilliam in accordance with Section 551.001 et seq of the Texas Government Code under one or more of the following provision(s) of the Act: The Board may hear and deliberate this complaint in closed session under Section 551.074 of the Texas Government Code unless Ms. Gilliam wants the hearing to be in open session. Even if the hearing is held in open session, if during the course of the hearing, there are issues raised relating to other employees, the Board of Trustees, in accordance with Section 551.074 of the Texas Government Code may move into Closed Session. The Board may also move into closed session under 551.071 to consult with the Board’s attorney.

IX. RECONVENE REGULAR MEETING: Ms. Good reconvened the open meeting at 7:56 p.m.

X. DELIBERATION AND POSSIBLE ACTION ON TERMINATION: Dr. Scott made a motion to uphold the recommendation by Dr. Head to terminate vice chancellor of finance and administration Ms. Cynthia Gilliam. Dr. Holsey seconded the motion. The vote was unanimous.

XI. INTRODUCTIONS, SPECIAL GUESTS AND RECOGNITIONS: None

XII. WORKSHOP: None

XIII. CLOSED SESSION: At 7:58 p.m. Ms. Good convened the Board in closed session, in

accordance with Section 551.001 et seq. of the Texas Government Code under one or more of the following provision(s) of the Act:

Section 551.071 – Consultation with Attorney

• Status of Pending Litigation • On any item on the Agenda

Section 551.072 – Deliberation Regarding Real Property

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• LSC-University Park, LSC-CyFair, LSC-North Harris, LSC-Tomball, LSC–Montgomery, LSC-SO-University Park

Section 551.074 - Personnel Matters • Chancellor’s Contract

XIV. RECONVENE REGULAR MEETING: Ms. Good reconvened the open meeting at 8:45

p.m.

XV. APPROVAL OF THE MINUTES OF THE JUNE 2, 2016 WORKSHOP AND REGULAR MEETING AND THE JULY 14, 2016 BUDGET WORKSHOP: upon a motion made by Dr. Trowbridge and a second by Dr. Scott the board unanimously approved the minutes of the June 2, 2016 Workshop and Regular Meeting and the amended July 14, 2016 Budget Workshop adding Dr. Holsey as present.

XVI. SPECIAL REPORTS AND ANNOUNCEMENTS:

1. Chancellor: Dr. Head announced that LSC night at the Houston Astros will be on Tuesday, August 16, 2016. LSC has reserved section for those wanting to attend.

2. College Presidents: None

3. Vice Chancellors: None 4. Faculty Senate Presidents: None 5. Board Members: Mr. Lloyd thanked Dr. Head and President Ardalan for meeting with

his church and pastoral staff. He indicated that they found 40% of their senior students’ parents couldn’t afford college. Dr. Trowbridge shared a conversation with a student with cancer whose mother recently passed away from cancer, that she will be coming back to school. Dr. Scott announced the Policy Committee will reserve comments for the agenda items.

XVII. CITIZENS DESIRING TO ADDRESS THE BOARD: None.

XVIII. CONSIDERATION OF THE CONSENT AGENDA: Items #1, 3, 5, 6, 7, 8, 9, 20, 21, 22, 23, 24, 25, 31, 34, 35 and 36 were pulled from the agenda to be considered separately. Item #26 was removed from the agenda and action will be taken at a later board meeting. Ms. Good proceeded with the Consent Agenda. Dr. Trowbridge made a motion to approve items 2, 4, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 27, 28, 29, 30, 32, and 33. Dr. Smith seconded the motion and the Board unanimously passed the Consent Agenda. A copy is attached as Exhibit “C”.

XIX. POLICY REPORT AND CONSIDERATIONS:

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1. Consideration of Approval of Change to Policy I.C.2.19 (ACTION ITEM 1) (FINAL READING) upon a motion made by Dr. Smith and a second by Mr. Murillo the Board of Trustees unanimously approved the proposed change to Policy I.C.2.19. A copy is attached as Exhibit “D”.

2. Consideration and Approval of the Proposed Amendment to Lone Star College Board

Policy Manual Section IV.F.2 Professional Development and Qualified Tuition Reduction Program/Educational Assistance Program (ACTION ITEM 2) (FINAL READING): the Board of Trustees reviewed and approved the Proposed Amendment to the College’s Board Policy Manual Section IV.F.2, amending the name of Section IV.F.2 to Professional Development and Educational Assistance Program and Section policy provisions related to professional development and educational assistance for employees. This item was passed in the Consent Agenda. A copy is attached as Exhibit “E”.

3. Consideration of Approval of the Order Calling Trustee Election and to Appoint a Staff

Agent for the Board Secretary to Perform Election Duties (ACTION ITEM 3): upon a motion by Mr. Murillo and a second by Dr. Smith the Board of Trustees approved the order calling the trustee election on November 8, 2016. The trustee election is for District No. 5, District No. 6, and District No. 7 for a six-year term on the Board of Trustees of the Lone Star College System. A copy is attached as Exhibit “F”.

XX. CURRICULUM REPORT AND CONSIDERATIONS:

1. Consideration of Approval of expanding the Accounting Associate of Applied Science (AAS) degree and CPA Certificate to Lone Star College-Kingwood (ACTION ITEM 4): the Board of Trustees approved an expansion of the Accounting AAS degree and CPA Advanced Technical Certificate to Lone Star College-Kingwood. This item was passed in the Consent Agenda. A copy is attached as Exhibit “G”.

XXI. FINANCIAL REPORTS AND CONSIDERATIONS:

1. Monthly Financial Statements: Ms. Carin Hutchins, acting CFO for administration and finance, presented the monthly financial statements for the month ended June 30, 2016 and May 31, 2016 and the Quarterly Reports for May 31, 2016. A copy is attached as Exhibit “H”.

2. Consideration of Adoption of the Recommended 2016-2017 Budgets (ACTION ITEM 5): upon a motion by Dr. Holsey and a second by Dr. Smith the Board of Trustees adopted the 2016-2017 recommended budgets and authorize the Chancellor to approve expenditure budget transfers among the funds, as necessary and allowed by law, as long as such transfers do not result in a change in the total expenditures budget of $347,662,000. A copy is attached as Exhibit “I”.

3. Consideration of Approval of Proposed Salary Schedule Changes for Deans of

Instruction and Master of Fine Arts (ACTION ITEM 6): upon a motion by Dr. Smith and a second by Dr. Holsey the Board of Trustees approve the salary schedule changes

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with an effective date of September 1, 2016 for creation of band 091A for Deans of Instruction and creation of a separate faculty pay for Masters of Fine Arts. Ms. Good abstained. A copy is attached as Exhibit “J”.

4. Consideration of Approval of Annual Purchases of Technology Hardware, Software,

and Services (ACTION ITEM 7): upon a motion by Dr. Scott and a second by Mr. Murillo the Board of Trustees approve the purchase of technology hardware, software, and services in a total not-to-exceed sum of $10,000,000 during FY 2016-17. The Chancellor also recommends that the Board authorize him or a designee to execute individual contracts in excess of $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract. The Chancellor finally recommends to the Board that it expressly authorize him or a designee to execute the contracts detailed in Appendix A for the not-to-exceed sums listed therein. A copy is attached as Exhibit “K”.

5. Consideration of Approval of Annual Purchases of Bond-Funded Construction and

Related Services (ACTION ITEM 8): upon a motion by Mr. Murillo and a second by Dr. Smith the Board of Trustees approve the purchase of bond-funded construction and construction-related services in a total sum not exceeding $3,000,000 during FY 2016-17. The Chancellor also recommends that the Board authorize him or a designee to execute individual contracts in excess of $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each individual contract. Contract sums exceeding $500,000 will be individually presented to the Board for consideration of approval. A copy is attached as Exhibit “L”.

6. Consideration of Approval of Annual Purchases of Construction and Related Services

(ACTION ITEM 9): upon a motion by Dr. Holsey and a second by Dr. Smith the Board of Trustees approve the purchase of construction and construction-related services in a total sum not exceeding $7,000,000 during FY 2016-17. The Chancellor also recommends that the Board authorize him or a designee to execute individual contracts in excess of $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract. Contract sums exceeding $500,000 will be individually presented to the Board for consideration of approval. A copy is attached as Exhibit “M”.

7. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and

Execute Agreements to Purchase Elevator Maintenance, Safety Inspections, and Repair Services (ACTION ITEM 10): the Board of Trustees authorize the Chancellor or designee to negotiate and execute agreements for the purchase of elevator maintenance, safety inspections, and repair services from the vendors listed below for a total not-to-exceed amount of $800,000 and a contract term no longer than five years. The Chancellor recommends that the two vendors with the highest evaluation scores be awarded the contracts for Request for Proposals (“RFP”) No. 430: Kone, Inc., 4607 World Houston Parkway, Suite 150, Houston, TX 77032 and Southwest Elevator d/b/a Oracle Elevator, 1811 North Freeway, Suite 222, Houston, TX 77060. This item was passed in the Consent Agenda. A copy is attached as Exhibit “N”.

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8. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract to Purchase Pressure Washing Services (ACTION ITEM 11): the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract to purchase pressure washing services from Tier One Property Services, L.L.C. d/b/a Aztec Facility Services, 11000 S. Wilcrest Drive Suite 125, Houston, TX 77099, for an amount not-to-exceed $1,500,000 over five years. This item was passed in the Consent Agenda. A copy is attached as Exhibit “O”.

9. Consideration of Approval to Purchase Library Materials, Supplies, Services, and

Resource Sharing Membership Fees for FY 2016-17 (ACTION ITEM 12): the Board of Trustees approve the purchase of library materials, supplies, services, and resource sharing membership fees for FY 2016-17 in an amount not-to-exceed $1,287,000, and authorize the Chancellor or designee to execute any agreements related to these purchases including individual contracts in excess of $100,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “P”.

10. Consideration of Approval to Renew the Annual Insurance Policies for FY 2016-17

and the Agreements for the Administration of Student Liability and Medical Insurance (ACTION ITEM 13): the Board of Trustees approve the renewal of the annual insurance policies for FY 2016-17 with estimated premiums totaling $2.7 million for the coverage year as summarized in Appendix A, and the agreements for the administration of student liability and medical insurance outlined This item was passed in the Consent Agenda. A copy is attached as Exhibit “Q”.


Execute Additional Agreements or Amendments to Existing Agreements on behalf of Lone Star College for the Purchase of Electricity Services (ACTION ITEM 14): the Board of Trustees authorize the Chancellor or designee to negotiate and execute additional agreements or amendments to existing agreements on behalf of Lone Star College with the Texas General Land Office (“GLO”), Stephen F. Austin Building, 1700 North Congress Avenue, Austin, Texas 78701, to purchase electricity services for a period not-to-exceed 60 months, beginning July 2019 through June 2024. This item was passed in the Consent Agenda. A copy is attached as Exhibit “R”.


Execute a Contract for Independent Audit Services (ACTION ITEM 15): the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract with the independent audit firm, Whitley Penn, LLP, 3411 Richmond Avenue, Suite 500, Houston, Texas 77046, for independent audit services in an amount not-to-exceed $220,000 for the FY 2016 and 2017 audits. This item was passed in the Consent Agenda. A copy is attached as Exhibit “S”.


Execute a Contract to Purchase Classification Services (ACTION ITEM 16): the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract to purchase classification services from Precision Task Group, 9801

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Westheimer, Suite 803, Houston, Texas 77042, in a not-to-exceed amount of $294,700. This item was passed in the Consent Agenda. A copy is attached as Exhibit “T”.

14. Consideration of Approval to Authorize the Chancellor or Designee to Amend the

Contract with the LSC-CyFair Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 17): the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with M. Arthur Gensler Jr. & Associates, Inc. dba Gensler (“Gensler”), 711 Louisiana Street #300, Houston, Texas 77002, for the purchase of $204,631 in additional architectural services and a revised total contract amount of $1,623,381. This item was passed in the Consent Agenda. A copy is attached as Exhibit “U”.


Contract with the LSC-Kingwood Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 18): the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with WHR Architects, Inc. (“WHR”),111 Louisiana Street #26, Houston, Texas 77002, for the purchase of $198,907 in additional architectural services and a revised total contract amount of $1,241,361. This item was passed in the Consent Agenda. A copy is attached as Exhibit “V”.


Contract with the LSC-Montgomery Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 19): the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with Smith & Company Architects, 1500 McGowen Street, Suite 150, Houston, Texas 77004, for the purchase of $128,810 in additional architectural services and a revised total contract amount of $608,010. This item was passed in the Consent Agenda. A copy is attached as Exhibit “W”.


Contract with the LSC-North Harris Architectural Firm for Design Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 20): upon a motion by Dr. Holsey and a second by Mr. Lloyd the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with PBK Architects, Inc., 11 Greenway Plaza #2210, Houston, Texas 77046, for the purchase of additional architectural services in an amount not-to-exceed $409,629 for a total contract sum of $1,550,629. The Chancellor also recommends the Board expressly authorize this contract under Texas Education Code Section 51.9337(f), which requires the Board to expressly authorize amendments that increase a total contract sum in excess of $1,000,000. A copy is attached as Exhibit “X”.


Contract with the LSC-Tomball Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 21): upon a motion by Dr. Holsey and a second by Mr. Lloyd the Board of Trustees authorize the

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Chancellor or designee to execute a contract amendment with Page Southerland Page, Inc. d/b/a Page (“Page”), 1100 Louisiana, Suite 1, Houston, Texas 77002, for the purchase of $216,180 in additional architectural services and a revised total contract amount of $519,180. A copy is attached as Exhibit “Y”.


Contract with the LSC-University Park Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 22): upon a motion by Dr. Smith and a second by Dr. Holsey the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with Kirksey Architecture, 6909 Portwest Drive, Houston, Texas, 77024, for the purchase of $115,919 in additional architectural services and a revised total contract amount of $1,006,719. The Chancellor also recommends the Board expressly authorize this contract under Texas Education Code Section 51.9337(f), which requires the Board to expressly authorize amendments that increase a total contract sum in excess of $1,000,000. A copy is attached as Exhibit “Z”.

20. Consideration of Ratification Authorizing the Chancellor’s or Designee’s Execution of

a Contract with the LSC-Kingwood and LSC-North Harris Commissioning Firm for Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 23): upon a motion by Dr. Smith and a second by Dr. Scott the Board of Trustees ratified the Chancellor’s or designee’s execution of a contract with Page Southerland Page, Inc. d/b/a Page (“Page”), 1100 Louisiana, Suite 1, Houston, Texas 77002, for the purchase of commissioning agent services in a sum not exceeding $365,420. A copy is attached as Exhibit “aa”.

21. Consideration of Ratification Authorizing the Chancellor’s or Designee’s Execution of

a Contract with the LSC-Montgomery and LSC-Tomball Commissioning Firm for Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 24): upon a motion by Dr. Holsey and a second by Dr. Scott the Board of Trustees ratified the Chancellor’s or designee’s execution of a contract with Affiliated Engineers, Inc., 1 East Greenway Plaza, Houston, Texas 77046, for the purchase of commissioning agent services in a sum not exceeding $218,080. A copy is attached as Exhibit “bb”.

22. Consideration of Ratification of the Chancellor’s or Designee’s Execution of a Contract

with the LSC-CyFair and LSC-University Park Commissioning Firm for Services Related to the 2014 General Obligation Bond Construction Program (ACTION ITEM 25): upon a motion by Dr. Smith and a second by Dr. Scott the Board of Trustees ratified the Chancellor’s or designee’s execution of a contract with Sebesta, Inc., 5300 Memorial Drive, Suite 390, Houston, Texas 77007, for the purchase of commissioning agent services in a sum not exceeding $170,463. A copy is attached as Exhibit “cc”.


Contract with the Program Management Firm for Additional Services Related to the Projects Under the 2014 General Obligation Bond Construction Program (ACTION

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ITEM 26): This item was removed from the agenda to be brought to the board at a later meeting. A copy is attached as Exhibit “dd”.


Execute the Guaranteed Maximum Price (“GMP”) Contract with the LSC-University Park Construction Manager at Risk (“CMAR”) Firm for Construction Services Related to the Building 12 and 13 Entrance Canopy and Parking Project (ACTION ITEM 27): the Board of Trustees authorize the Chancellor or designee to negotiate and execute the GMP contract with the LSC-University Park CMAR firm, E.E. Reed Construction, L.P., 333 Commerce Green Blvd., Sugar Land, Texas, for construction services related to the Building 12 and 13 Entrance Canopy and Parking Project in a sum not-to-exceed $1,816,108. This item was passed in the Consent Agenda. A copy is attached as Exhibit “ee”.


Execute Easements and Agreements Related to the 2014 General Obligation Bond Construction Program at LSC-North Harris (ACTION ITEM 28): the Board of Trustees authorize the Chancellor or designee to execute easements and agreements related to the 2014 General Obligation Bond Construction Program at LSC-North Harris. This item was passed in the Consent Agenda. A copy is attached as Exhibit “ff”.


Execute a Construction Contract for Building Core Improvements at LSC-University Park Building 10, Level 5 (ACTION ITEM 29): the Board of Trustees authorize the Chancellor or designee to negotiate and execute a Job Order Contract with Horizon International Group, LLC, 4204 Bellaire Blvd. Suite 210, Houston, Texas 77025, for building core improvements at LSC-University Park Building 10, Level 5 in an amount not-to-exceed $200,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “gg”.

27. Consideration of Approval to Authorize the Chancellor or Designee to Extend the Fire

Academy Facility Use Agreement (ACTION ITEM 30): the Board of Trustees authorize the Chancellor or designee to execute an amendment to extend the Fire Academy facility use agreement with The Woodlands Township, 2801 Technology Forest Blvd., The Woodlands, Texas 77381, for two additional years for a sum not exceeding $110,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “hh”.

28. Consideration and Approval to Review and Ratify an Agreement for the Economic

Development of Harris County and the Chancellor’s Execution of the Agreement (ACTION ITEM 31): upon a motion by Dr. Smith and a second by Mr. Murillo the Board of Trustees review and ratify the Economic Development Funding Agreement with Harris County for an in-kind sum not exceeding $125,000 and the Chancellor’s execution of the agreement. A copy is attached as Exhibit “ii”.

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29. Consideration of Approval of Resolution Ratifying and Confirming the Terms and Provisions Relating to the Issuance of Lone Star College’s Revenue Financing System Refunding Bonds, Series 2016, Maintenance Tax Refunding Bonds, Series 2016, and Limited Tax General Obligation Refunding Bonds, Series 2016; Ratifying and Confirming the Defeasance of Certain Outstanding Bonds of the College; and Containing Other Matters Relating Thereto (ACTION ITEM 32): the Board of Trustees adopt the resolution, which affirms the pricing certificates for the three 2016 series of refunding bonds, the net present value debt service savings achieved by these series of refunding bonds, and the defeasance of certain outstanding bonds. This item was passed in the Consent Agenda. A copy is attached as Exhibit “jj”.

XXII. PERSONNEL REPORTS AND CONSIDERATIONS:

1. Consideration of Ratification of Appointments (ACTION ITEM 33): the Board

unanimously ratified the appointments as presented. This item was passed in the Consent Agenda. A copy is attached as Exhibit “kk”.

2. Consideration of Acceptance of Resignations (ACTION ITEM 34): upon a motion by

Dr. Holsey and a second by Mr. Lloyd the Board unanimously accepted the resignations as presented. A copy is attached as Exhibit “ll”.

3. Proposed Amendments/Addenda to the Chancellor’s Contract (ACTION ITEM 35):

Chair Good made a motion to approve the Chancellor’s Contract with the terms as discussed in closed session, to delegate Board Counsel Meri Schneider-Vogel to draft the final document, to delegate Chair Good the authority to sign the document and to revise the plan document for the deferred compensation plan and delegate to administration the authority to revise the plan document from 15% to 20% and make any other changes required to be consistent with the contract terms. Dr. Holsey seconded the motion and the vote was unanimous. A copy is attached as Exhibit “mm”.

XXIII. SPECIAL REPORT AND CONSIDERATIONS:

1. Consideration of Approval for the Board of Trustees to Submit a Nomination to

Association of Community College Trustees (ACCT) for ACCT Board Committees (ACTION ITEM 36): upon a motion by Dr. Smith and a second by Dr. Scott the board approved the nominations of Dr. Smith and Mr. Lloyd to be submitted for ACCT Board Committees. A copy is attached as Exhibit “nn”.

XXIV. BUILDING AND GROUNDS REPORTS:

Construction Projects Update: the Board reviewed the report as presented. A copy is attached as Exhibit “oo”.

XXV. SUGGESTED FUTURE AGENDA ITEMS: Items to be considered to be added to

future board meeting agendas:

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Certification of Posting of Notice to the August 4, 2016 Public Hearing

2016-17 Proposed Budget of the Lone Star College System

I, Stephen C. Head, Chancellor of the Lone Star College System, do hereby certify that a notice of the Public Hearing was posted on Monday the 1st day of August, 2016 in a place convenient to the public in the Administration Office of the Central Services and Training Center, on all college campuses and on the system website as required by Section 551.002 et seq., Texas Government Code. Special notice of the meeting was provided to the news media as required by Section 551.001 et seq., Texas Government Code.

Given under my hand this the 1st day of August, 2016.

LONE STAR COLLEGE SYSTEM

_____________________ Stephen C. Head

Chancellor

Exhibit "A"

Certification of Posting of Notice to the August 4, 2016 Regular Meeting of the

Lone Star College System’s Board of Trustees

I, Stephen C. Head, Chancellor of the Lone Star College System, do hereby certify that a notice of this meeting was posted on Monday the 1st day of August, 2016 in a place convenient to the public at LSC-System Office The Woodlands, The Woodlands Leadership Building, on all college campuses and on the system website as required by Section 551.002 et seq., Texas Government Code. Special notice of the meeting was provided to the news media as required by Section 551.001 et seq., Texas Government Code.

Given under my hand this the 1st day of August, 2016.

LONE STAR COLLEGE SYSTEM

_____________________ Stephen C. Head

Chancellor

Exhibit "B"

Consideration of Consent Agenda Board Meeting 8-4-16

Consent Agenda: A roll call of individual action items will determine the consent agenda. If a trustee

has a question or plans to cast a negative vote regarding a specific recommendation, then the trustee/trustees need to acknowledge their intention to the Chair by show of hand during the roll call: this action item will be considered in the regular order of business as an individual action item.

Those action items that the trustees plan to approve without further question or discussion will be placed on the consent agenda during roll call of individual action items. Upon the creation of the consent agenda, a motion, a second to the motion, and unanimous approval of the Board of Trustees is needed to approve the action items. Upon approval of the consent agenda, the Board of Trustees will proceed with the remainder of the agenda.

Rationale: The consent agenda format is an organization process for meetings that allows the governing board to focus their time and attention on action items that require more elaboration, information, and/or discussion. The intent of the consent agenda is to support efficiency and effectiveness of the meeting.

Tally of Action Items: Chancellor Board

Consent Recommended Separate Agenda Separate Action Action

# 1 – Approve Change to Policy I.C.2.19 ______ ______ ______ # 2 – Approve Amendment LSC Board Policy IV.F.2 ______ ______ ______ # 3 – Approve Order Calling Trustee Elect/Appt Staff Agent ______ ______ ______ # 4 – Approve expansion AAS/CPA Cert/LSC-Kingwood ______ ______ ______ # 5– Adopt Recommended 2016-17 Budgets ______ ______ ______ # 6 – Approve Proposed Salary Change/Deans/Inst/FineArt ______ ______ ______ # 7 – Approve Annual Purchases TechnologyHardware/software ______ ______ ______ # 8 – Approve Annual Purch/Bond-Funded Construction Svs ______ ______ ______ # 9 – Approve Annual Purch Construction & Related Svs ______ ______ ______ #10 – Authorize/Chan/Neg/Exec/Agrmt/Purch/Elev/Main/Svs ______ ______ ______ #11 – Auth/Cha/Neg/Exec/Cont/Purch/Power/Washing Svcs ______ ______ ______ #12 – Approve Purch/Library Materials/Supplies/Svs/2016-17 ______ ______ ______ #13 – Approve Renewal Annual Insurance Policies FY 16-17 ______ ______ ______ #14 – Authorize/Chan/Neg/Exec/Agrmt/Purch/Electric/Services ______ ______ ______ #15 – Auth/Chan/Neg/Exec/Contr/Independent/Audit/Svcs ______ ______ ______ #16 – Auth/Chan/Neg/Exec/Contr/Purch/Classification/Svcs ______ ______ ______ #17 – Auth/Chan/Amend/Contr/LSC-CF/Architectural Firm ______ ______ ______ #18 – Auth/Chan/Amend/Contr/LSC-KW/Architectural Firm ______ ______ ______ #19 – Auth/Chan/Amend/Contr/LSC-M /Architectural Firm ______ ______ ______

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Exhibit "C"

X

X

XXXXX

Tally of Action Items: Chancellor Board

Consent Recommended Separate Agenda Separate Action Action

#20 – Auth/Chan/Amend/Contr/LSC-NH/Architectural Firm ______ ______ ______ #21 – Auth/Chan/Amend/Contr/LSC-Tomball/Architect/Firm ______ ______ ______ #22 – Auth/Chan/Amend/Contr/LSC-UP/Architectural Firm ______ ______ ______ #23 – Auth/Chan/Exec/Contr/LSC-KW/NH/Commission/Firm ______ ______ ______ #24 – Auth/Chan/Exec/Contr/LSC-M/Tom/Commission/Firm ______ ______ ______ #25 – Auth/Chan/Exec/Contr/LSC-CF/UP/Commission/Firm ______ ______ ______ #26 – Auth/Chan/Amend/Contr/Prog/Mgmt/Firm/Add’l/Svcs ______ ______ ______ #27 – Auth/Chan/Exec/GMP/LSC-UP/CMAR/Bldg12 & 13 ______ ______ ______ #28 – Auth/Chan/Exec/Easements/Agree/LSC-NH/GO Bond ______ ______ ______ #29 – Auth/Chan/Exec/Contr/Bldg/Improve/LSC-UP/Bldg10 ______ ______ ______ #30 – Authorize/Chan/Extend Fire Acad/Facilty/Use/Agrmt ______ ______ ______ #31 – Approve Review/Ratify Agree/ED Harris Co ______ ______ ______ #32 – Approve Res/Ratify/Terms/Prov/LSC/Refund Bonds ______ ______ ______ #33 – Ratify Appointments ______ ______ ______ #34 – Accept Resignations ______ ______ ______ #35 – Accept any Proposed Addenda Chancellor’s Contract ______ ______ ______ #36 – Approve BOT to Submit Nominations ACCT Comm ______ ______ ______

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XXXXXX

X

XXX

*X

*X - Pulled from the agenda to be considered at future meeting.

Exhibit "C"

Policy Report and Consideration No. 1 (ACTION ITEM 1) Board Meeting 8-4-16

Request: Consideration of Approval of Change to Policy I.C.2.19 (ACTION ITEM 1) (FINAL READING)

Chancellor’s Recommendation:

That the Board of Trustees approve the proposed change to Policy I.C.2.19.

Rationale: Currently Board Policy I.C.2.19 provides that to be elected to a public office, a candidate must receive more votes than any other candidate for the office. This is plurality vote requirement. Upon review of this policy and current statutory authority, as well as an Attorney General opinion, the College should be electing its trustees by majority vote rather than by plurality

Although Section 2.001 of the Election Code provides that elections in the State of Texas are by plurality that is only true if another law does not provide otherwise. Section 130.082 provides that junior college districts are to elect trustees by majority vote. Additionally, Section 130.0822, governing junior colleges electing by single member district, requires compliance with Section 130.082.

Fiscal Impact: This policy change, which now requires a majority vote could result in run-off elections for which the College would bear the cost of administering the run-off election and unlike their general elections the College likely would not be able to disperse the cost of a run-off with election partners.

Staff Resource: Helen Clougherty 832-813-6514Mario Castillo 832-813-6655

Exhibit "D"

I.C.2.19 Majority Vote Required

A candidate receiving a majority of the votes cast for a position shall be declared elected. If no candidate receives a majority, then the two candidates receiving the highest number of votes shall run against each other for the position in a run-off election. The run-off election shall be held and conducted in compliance with state law.1

1 TEX. ELEC. CODE § 2.001; TEX. EDUC. CODE § 130.044(e)


Request: Consideration and Approval of the Proposed Amendment to Lone Star College Board Policy Manual Section IV.F.2 Professional Development and Qualified Tuition Reduction Program/Educational Assistance Program (ACTION ITEM 2) (FINAL READING)


That the Board of Trustees approve the Proposed Amendment to the College’s Board Policy Manual Section IV.F.2, amending the name of Section IV.F.2 to Professional Development and Educational Assistance Program and Section policy provisions related to professional development and educational assistance for employees.

Rationale: Current policy requires repayment of tuition and fee waivers granted to employees unsuccessful in satisfying waiver eligibility requirements. In efforts to encourage and cultivate a culture of support to employees in educational career advancement opportunities, the College seeks to eliminate the condition of repayment under any circumstance. This amendment would also remove and relocate the specific listing of additional waiver eligibility requirements contained in current policy to procedures developed and published for this program. This relocation would allow the College the ability to promptly revise or adjust eligibility requirements as needed in response to evolving program needs. Additionally, the renaming of this Section to “Professional Development and Educational Assistance Program” (emphasis added) ensures that the College policy naming convention is accurately aligned with the federal statutory naming convention for this program.

For these reasons, the College requests the Board to consider and review the proposed Section IV.F.2 policy amendments.

Fiscal Impact: Based on prior fiscal year data, the cost of this policy amendment is estimated to be approximately $30,000.

Resource: Mario K. Castillo 832-813-6655 Carin Hutchins 832-813-6737

Exhibit "E"

IV.F.2. Professional Development and Educational Assistance Program

IV.F.2.01 - Policy

The College encourages and supports the advancement of all employees through educational, professional, and vocational development and training opportunities.

IV.F.2.02 - Definitions

(a) Professional Development means activities and opportunities that enhance the skill, knowledge and ability required in an employee's current position, or prepares an employee for a career path position in their area1.

(b) Educational Assistance Program means a separate written plan of an employer for the exclusive benefit of his employees to provide such employees with educational assistance2.

(c) Educational Assistance means payment, by an employer, of expenses incurred by or on behalf of an employee for education of the employee (including, but not limited to, tuition, fees, and similar payments, books, supplies and equipment), and the provision, by an employer, of courses of instruction for such employee (including books, supplies, and equipment). Educational Assistance does not include payment for, or the provision of, tools or supplies which may be retained by the employee after completion of a course of instruction, or meals, lodging, or transportation, or payment for, or the provision of any benefits with respect to, any course or other education involving sports, games, or hobbies3

(d) Continuous Employment means employment in which employees receive pay in 26 consecutive pay periods during normal working business days4.

(e) Laboratory Fee means a sum sufficient to cover the general laboratory material and supply costs used by a laboratory student. Laboratory fees charged by the College shall not exceed the lesser of $24 per semester credit hour of laboratory course credit for which the student is enrolled or the cost of actual materials and supplies used by the student. 5

IV.F.2.03 - Required Development

The College provides financial support for professional licensure renewals, professional association or organization membership dues, and established continuing education requirements for specific positions. Position requirements are determined by the Chancellor or designee. Additionally, the College provides time-off and cost-reimbursement for job-specific training

1 Taken from existing Board Policy F.2.02 (professional development activities). 2 26 U.S.C.A. §127 (b)(1). 3 26 U.S.C.A. §127(c)(1). 4 Taken from existing Board Policy F.2.05 (eligibility for a waiver of tuition and required fees). 5 LSC Board Policy Manual Section VI.B.4.02 (d); Texas Education Code Section 54.501.

required for all employees, including but not limited to, orientation, legal compliance training, systems training, process training and other position-specific training.

IV.F.2.04 - Professional Development Activities

An employee may request Professional Development Leave to attend professional conferences, workshops, seminars, training courses, or meetings as approved by the supervisor. Pre-approved Leave is an excused absence. Sick, vacation, or compensatory time is not used. Additionally, an employee may request reimbursement or an advance for expenses related to professional development activities, including registration fees, travel, meals, and lodging in accordance with College travel policies and procedures.

All Professional Development costs and expenses must be within departmental budget authority and pre-approved by an employee’s supervisor.

IV.F.2.05 - Organization Membership

Memberships in professional or academic associations or organizations are reimbursable, with supervisor approval, up to $25 a year per employee. The College shall not reimburse dues paid to unions or organizations engaging in lobbying or political activities.

IV.F.2.06 - Employee Educational Assistance

The College may provide limited Educational Assistance for eligible employees seeking to further their academic development. As Educational Assistance, the College will waive the tuition and required fees for eligible employees (up to six credit hours per term for a maximum of 18 credit hours per academic year) for approved College courses taken in accordance with this policy. Additionally, the College will do the same with state-funded continuing education courses for eligible employees for approved College courses taken in accordance with this policy, subject to space availability. The College may waive tuition and required fees for a course that includes a laboratory fee.

IV.F.2.07 Educational Assistance Eligibility

Full-time employees employed at the start of class are eligible to receive assistance.

Part-time employees regularly employed with the College who have completed twelve months of continuous employment are eligible. Adjunct faculty who have taught at least six consecutive spring and fall semesters are eligible for assistance.

IV.F.2.08 Educational Assistance Conditions

Conditions of Educational Assistance will be developed and published by the College in procedures for the Educational Assistance Program.

IV.F.2.09 Procedures

The Chancellor or designee may develop procedures for appropriate implementation of the program.


Request: Consideration of Approval of the Order Calling Trustee Election and to Appoint a Staff Agent for the Board Secretary to Perform Election Duties


That the Board of Trustees approve the order calling the trustee election on November 8, 2016. The trustee election is for District No. 5, District No. 6, and District No. 7 for a six-year term on the Board of Trustees of the Lone Star College System.

Rationale: Board of Trustees Policy I.C.2.02 Elections, in accordance with Chapter 130 of the Texas Education Code, requires an election of trustees for single member districts in Districts 5, 6, and 7 for a six-year term.

The Board is also requested to appoint Helen Clougherty as the agent for Board Secretary, Dr. Ron Trowbridge, to perform the election duties and to keep the office hours required by Section 31.123 of the Election Code. A notice will be posted in accordance with election law requirements.

Fiscal Impact: Montgomery County Elections Services, San Jacinto County Election Services, and Harris County Clerk Elections Division shall conduct the election for the System at the designated county polling sites for early voting and on Election Day. The estimated cost is approximately $750,000 based on previous election costs. Funds are available in the approved 2015-2016 operating budget. Funds for the 2016-2017 fiscal year will be included in the proposed 2016-2017 operating budget.

Staff Resource: Helen Clougherty 832-813-6514

Exhibit "F"

ORDER CALLING SCHOOL TRUSTEE ELECTION THE STATE OF TEXAS § COUNTIES OF HARRIS, MONTGOMERY, AND SAN JACINTO § LONE STAR COLLEGE SYSTEM § WHEREAS, under the laws governing the Lone Star College System (“System”), an election for Trustees to District Nos. 5, 6 and 7, respectively, on the Board of Trustees of the Lone Star College System, shall be held on November 8, 2016, under the direction of the Chancellor of the System or his designee; NOW, THEREFORE, be it ordered by the Board of Trustees of the Lone Star College System that: SECTION 1: An election shall be held within the System on November 8, 2016, between the hours of 7:00 a.m. and 7:00 p.m. for the purpose of electing Trustees to fill positions for District Nos. 5, 6, and 7, respectively, of the Board of the System. The Chairman and Secretary of the Board are authorized and directed to give notice of such election in the manner and for the time required by law. All of the duly qualified resident electors of the System shall be qualified to vote in said election. SECTION 2: Any qualified voter desiring election for a position on such Board shall file with Ms. Helen Clougherty as the agent for Dr. Ron Trowbridge, the Secretary of the Board of Trustees, between July 23, 2016 and August 22, 2016 a completed application and filing fee of two-hundred dollars ($200.00) or a petition with the signatures of two hundred (200) registered voters of the Lone Star College System District in which he or she is a candidate to have his or her name placed on the official ballot and the District number on such Board for which he or she desires to become a candidate. Candidates must be residents of Districts 5, 6, or 7 in which they intend to run.

No candidate shall be eligible to have his or her name placed on the official ballot under more than one position to be filled at such election. All candidates for Trustee in such election shall be voted upon and elected separately for positions on said Board, and all candidates shall be designated on the official ballot according to the number of such position to which they may seek election.

No person shall have a vote counted for him or her as a write-in candidate unless that person has filed a written declaration of write-in candidacy with Helen Clougherty, Vice Chancellor, Chief of Staff, by 5:00 p.m. on August 26, 2016 at the Lone Star College System Office.

If there is only one candidate for election to one or more positions at the close of the declaration of write-in candidacy deadline at 5:00 p.m. on August 26, 2016, Dr. Ron Trowbridge, Board of Trustees Secretary, shall certify in writing which candidates are unopposed for election. The certification shall be delivered to the Board of Trustees as soon as possible and the Board, in accordance with Texas Open Meeting requirements, may declare each unopposed candidate elected to office. If Dr. Ron Trowbridge is one of the unopposed candidates, Dr. Alton Smith, Board of Trustees Assistant Secretary, shall certify in writing which candidates are unopposed for election. The certification shall be delivered to the Board of Trustees as soon as possible and the Board, in accordance with Texas Open Meeting requirements, may declare each unopposed candidate elected to office.

SECTION 3: The official ballot shall have printed on it:

Official Ballot Lone Star College System

Trustees Election

and shall have designating numbers of each position to be filled, with the list of candidates under the position to which they respectively seek election. The names of the candidates for each position shall be arranged by lot.

#4665780.2

At such election each qualified voter shall not vote for more than one (1) candidate for each position. The candidates shall be elected by majority vote with the candidate receiving the majority of votes in the respective position being declared the winner. The results of the election shall be canvassed by the Board on November 10, 2016 at 5:00 p.m., in the Board Room of the Lone Star College System District Services and Training Center, 5000 Research Forest Drive, The Woodlands, Texas.

Montgomery County Elections Services, San Jacinto County Election Services, and Harris County Elections shall conduct the Trustee and Bond elections for the System at the designated county and District 5, 6, and 7 polling sites for early voting and on Election Day.

SECTION 4: The election shall be held at the following election precincts in Harris County, Montgomery County, and San Jacinto County within the boundaries and limits of Districts 5, 6, and 7 within Harris County, Montgomery County, and San Jacinto County for the Trustee election. The election precincts established shall be designated by numbers, and the boundaries of the election precincts shall be those respectively designated and numbered precincts, or parts of numbered precincts, lying within the boundaries of Districts of 5, 6, and 7 within the System, which have been duly described, designated, and established by order of the Harris County Commissioners Court, Montgomery County Commissioners Court, and San Jacinto County Commissioners Court. The polling places are listed on Exhibit A—these polling sites are subject to change by decision of the respective county election administrator and will updated in this Order as the new sites are identified. SECTION 5: Early voting by personal appearance shall begin on October 24, 2016 and continue through November 4, 2016 as listed on Exhibit B. Montgomery County registered voters may early vote at any Montgomery County early voting location for the Trustee election. Harris County registered voters may early vote at any Harris County early voting location for the Trustee election. San Jacinto County registered voters may early vote at any San Jacinto County early voting location for the Trustee election. The Early Voting Clerk for the election in Montgomery County, hereby designated to be Suzie Harvey, Montgomery County Elections Administrator, 9159 Airport Road, Conroe, Texas, 77303 will process, mail, and tabulate the early ballots by mail for Montgomery County.

The Early Voting Clerk for the election in Harris County, hereby designated to be Stan Stanart, Harris County Clerk, P.O. Box 1525, Houston, Texas, 77251-1525 will process, mail, and tabulate the early ballots by mail for Harris County. The Early Voting Clerk for the election in San Jacinto County, hereby designated to be Vicki Shelly, San Jacinto County Elections Administrator, 51 East Pine Avenue, Room A1, Coldspring, Texas, 77331 will process, mail, and tabulate the early ballots by mail for San Jacinto County. SECTION 6: The voting at each election site shall be by voting machines duly adopted by the Commissioners Court of Harris County, Montgomery County, and San Jacinto County utilizing a ballot method approved for use in elections held in each County. Voters in Harris County in Districts 5, 6, and 7 shall use the County’s electronic voting system to vote for a candidate for their respective Trustee position. Voters in Harris County and Montgomery County will vote by operating eSlate’s Rotary Select to highlight the name of the candidate for whom the voter desires to vote.. The voter will push the ENTER button to register their vote. Voters in San Jacinto County will vote by operating Election Systems & Software, Inc. iVotronic Touch Screen to highlight the

2

name of the candidate for who the voter desires to vote. The voter will press the small “vote” button at the very top of the iVotronic to cast the vote.

SECTION 7: This Order shall constitute the election order for the call of the election and the same or a substantial copy thereof shall constitute the notice of such election, and the Secretary of the Board is ordered to cause notice of the election to be given as required by law. Immediately after the election, the officers holding the election shall convey returns of the results to the Board of the System. The Board shall canvass such returns, declare the results of such election, and issue certificates of election to the persons shown by such returns to be elected to each of the three (3) named positions. Notice of such election shall be given by publishing a substantial copy of this election order, in English, Spanish, Vietnamese, and Chinese, one time, not earlier than the thirtieth day nor later than the tenth day prior to the date set for the election, in a newspaper published in the District, and by posting a copy of this order on the bulletin board used for posting notices of Board of Trustees meetings, in at least three (3) public places in the boundaries of the System and the System’s web page, not later than the 21st day prior to the date set for the election. Said election shall be held in accordance with the Texas Election Code, except as modified by the Texas Education Code and the Federal Voting Rights Act of 1965, as amended. It is hereby officially found and determined that notice of the meeting at which this order is adopted was given as required by the Texas Open Meetings Act, and that such meeting has been open to the public at all times when this order was discussed and acted on. PASSED AND APPROVED on August 4, 2016. ________________________________________ Chair, Board of Trustees LONE STAR COLLEGE SYSTEM ATTEST: ________________________________ Secretary, Board of Trustees LONE STAR COLLEGE SYSTEM (SEAL)

3

Curriculum Report and Consideration 1 (ACTION ITEM 4) Board Meeting 8-4-16

Request: Consideration of Approval of expanding the Accounting Associate of Applied Science (AAS) degree and CPA Certificate to Lone Star College-Kingwood.


That the Board of Trustees approve the following request for an expansion of the Accounting AAS degree and CPA Advanced Technical Certificate to Lone Star College-Kingwood.

Rationale: Lone Star College-Kingwood has traditionally offered some courses for the AAS and CPA Certificate without ability to graduate completing students. Demands in the Houston-Sugarland-Baytown Metropolitan Statistical Area (MSA) show substantial growth for accountants and accounting-related occupations, and labor market data from the Texas Workforce Commission, Economic Modeling Specialists and Burning Glass Technologies show very high demand and strong wages for these occupational fields.

Accounting AAS Occupation: Bookkeeping, Accounting & Auditing Clerks TWC Total Annual Average Job Openings (2012-2022) 1,125 TWC Entry Wage (2013) $11.86 TWC Median Wage (2013) $17.51 Burning Glass Demand (Job Postings Feb. 1, 2015- Jan. 31, 2016, Houston-Sugarland-Baytown Metropolitan Statistical Area)

5,027

Accounting ATC (CPA) Occupation: Accountants & Auditors TWC Total Annual Average Job Openings (2012-2022) 1,660 TWC Entry Wage (2013) $22.68 TWC Median Wage (2013) $33.70 Burning Glass Demand (Job Postings Feb. 1, 2015- Jan. 31, 2016, Houston-Sugarland-Baytown Metropolitan Statistical Area)

12,521

Sources: Texas Workforce Commission, Burning Glass Technologies

There will be no change to current program curriculum for these expansions to occur. Labor market data and zip code analysis were reviewed during the internal vetting process for this expansion request. No negative impacts to existing programs at LSC-Montgomery, LSC-North Harris, LSC-Tomball and LSC-University Park are predicted.

The Texas Higher Education Coordinating Board requires that the College’s Board of Trustees approves new programs.

Exhibit "G"

Fiscal Impact:

Funding for this program will be included in the proposed FY 2016-17 budget for LSC-Kingwood.

Staff Resource: Katherine Persson 832-316-8009

Financial Report and Consideration No. 1 Board Meeting 8-4-16

Report: Monthly Financial Statements

The financial statements for the months ended June 30, 2016 and May 31, 2016, and the quarterly investment report for the period ending May 31, 2016 are presented for Board review.

Exhibit "H"

87.1%

89.9%

91.8% 91.9%91.4%

80%

82%

84%

86%

88%

90%

92%

94%

96%

98%

100%

2011-12 2012-13 2013-14 2014-15 2015-16

ACTUAL REVENUES AS A % OF BUDGET9/1 THROUGH 6/30

1

74.8%75.4% 76.2% 78.6% 77.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2012-13 2013-14 2014-15 2015-16

ACTUAL EXPENDITURES AS A % OF BUDGET 9/1 THROUGH 6/30

2

LONE STAR COLLEGE

Statement of Revenues and ExpendituresGeneral and Auxiliary FundsYTD June 30, 2016Unaudited

PRIOR YEAR PRIOR YEAR

% ACTUAL ACTUAL % ACTUAL

FISCAL YTD TO BUDGET FISCAL YTD TO BUDGET

BUDGET ACTUAL 83% FY ELAPSED 6/30/2015 83% FY ELAPSED

REVENUES:

State Appropriations $ 74,090,000 $ 59,926,485 80.9% $ 58,705,316 81.0%

Tuition and Fees 111,840,000 106,014,225 94.8% 107,064,335 98.3%

Taxes 125,260,000 125,072,561 99.9% 112,451,941 96.7%

Investments 420,000 373,415 88.9% 352,051 100.6%

Other 6,020,000 4,526,479 75.2% 4,403,106 75.3%

Tuition/Growth Contingency 910,000 - 0.0% - 0.0%

Total Current Operations Revenues 318,540,000 295,913,165 92.9% 282,976,749 92.6%

Auxiliary Revenues 18,140,000 11,685,840 64.4% 11,827,133 78.8%

Total Revenues 336,680,000 307,599,005 91.4% 294,803,882 91.9%

Reserves 5,810,000 - 0.0% - 0.0%

Total Revenues and Reserves 342,490,000 307,599,005 294,803,882

EXPENDITURES:

Instruction-Academic 83,608,126 67,207,138 80.4% 65,557,601 84.3%

Instruction-Workforce 30,401,465 26,546,955 87.3% 25,514,246 93.5%

Public Service 760,194 610,902 80.4% 534,315 69.7%

Academic Support 52,487,205 37,400,039 71.3% 40,076,836 69.7%

Student Services 47,004,295 33,512,504 71.3% 32,250,621 74.5%

Institutional Support 31,729,157 25,271,327 79.6% 26,923,237 78.8%

Plant Operation and Maintenance 33,698,531 27,490,632 81.6% 26,396,529 73.6%

Staff Benefits 27,101,027 23,387,741 86.3% 21,605,574 95.0%

Growth Contingency 1,570,000 - 0.0% - 0.0%

Total Educational and General Expenditures 308,360,000 241,427,238 78.3% 238,858,959 79.3%

Repair, Replacement and Other

Internally Designated 5,050,000 2,386,276 47.3% 2,153,291 42.6%

Auxiliary 18,580,000 13,260,122 71.4% 11,731,950 78.2%

Total Expenditures 331,990,000 257,073,636 77.4% 252,744,200 78.6%

Other Changes - Debt Service & Fund Transfers 10,500,000 6,979,844 6,913,344

Total Expenditures and Transfers 342,490,000 264,053,480 259,657,544

NET INCREASE (DECREASE) IN FUND BALANCES

General Funds 440,000 45,119,807 35,051,155

Auxiliary Funds (440,000) (1,574,282) 95,183

TOTAL NET INCREASE (DECREASE) IN FUND BALANCES $ 0 $ 43,545,525 $ 35,146,338

3

LONE STAR COLLEGE

Balance Sheet

June 30, 2016

Unaudited

GASB Memorandum Memorandum

General & Reporting Totals Totals

ASSETS Restricted Entries (*) Current Year Prior Year

Cash, cash equivalents & investments $ 59,404,155 $ 198,662,458 $ (8,367) $ 258,058,246 $ 311,145,548

Accounts receivable, net 21,389,455 5,685,029 5,271,204 32,345,688 29,821,667

Prepaid and deferred expenses 13,468,048 - 13,468,048 8,058,236

Inventories, at cost 6,240 - - 6,240 48,770

Capital assets, net - - 781,414,018 781,414,018 750,469,441

TOTAL ASSETS 94,267,898 204,347,487 786,676,855 1,085,292,240 1,099,543,662

Deferred Outflows - - 8,864,100 8,864,100 -

TOTAL ASSETS AND DEFERRED OUTFLOWS $ 94,267,898 $ 204,347,487 $ 795,540,955 $ 1,094,156,340 $ 1,099,543,662

LIABILITIES AND FUND BALANCES

LIABILITIES:

Accounts payable & Accrued Absences Payable $ 4,571,867 $ 9,395,976 $ 13,967,843 $ 17,743,882

Deferred revenues 4,813,785 4,312,545 - 9,126,330 9,218,398

Accrued interest payable - 11,739,253 - 11,739,253 7,715,674

Bonds payable - - 736,311,395 736,311,395 752,801,818

Net Pension Liability - - 48,590,998 48,590,998 -

Assets held in custody for others - 8,022,791 - 8,022,791 7,968,995

TOTAL LIABILITIES 9,385,652 33,470,565 784,902,393 827,758,610 795,448,767

Deferred Inflows - - 14,864,130 14,864,130 -

TOTAL LIABILITIES AND DEFERRED INFLOWS 9,385,652 33,470,565 799,766,523 842,622,740 795,448,767

TOTAL FUND BALANCES 84,882,246 170,876,922 (4,225,568) 251,533,600 304,094,895

TOTAL LIABILITIES, DEFERRED INFLOWS AND

FUND BALANCES $ 94,267,898 $ 204,347,487 $ 795,540,955 $ 1,094,156,340 $ 1,099,543,662

* Includes GASB (Governmental Accounting Standards Board) reporting entries related to Capital Assets, Long Term Debt, and Pensions

Auxiliary

4

Description Ending BV 05/31/2016 Total Buys Total Sells Interest/Dividends

Ending BV

06/30/2016

Ending BV

06/30/2015

Weighted

Avg.

Purchase

Yield

GENERAL FUNDS

POOLS $ 22,703,309 $ 18,695,819 $ 33,627,190 $ 1,489 $ 7,771,938 $ 8,255,822

CERTIFICATES OF DEPOSIT 4,048,895 2,503 - 2,503 4,051,398 45,714,864

MONEY MARKET ACCOUNTS 15,665,735 6,559 - 2,664 15,672,294 15,630,098

SECURITIES 37,995,951 1,187 - 1,187 37,997,138 18,455,316

Total / Average $ 80,413,890 $ 18,706,068 $ 33,627,190 $ 7,843 $ 65,492,768 $ 88,056,100 0.59%

DEBT SERVICE & CAPITAL

PROJECTS

CERTIFICATES OF DEPOSIT $ 1,240,000 $ - $ - $ - $ 1,240,000 $ 10,040,392

DEBT SERVICE POOLS 58,394,343 306,149 - 5,621 58,700,492 39,789,959

CAPITAL PROJECTS POOLS 113,265,354 52,482 - 52,482 113,317,836 163,589,378

MONEY MARKET ACCOUNTS 15,122,524 4,591 - 4,591 15,127,115 15,078,759

AGENCIES 14,319,074 - 4,626 - 14,314,448 -

Total / Average $ 202,341,295 $ 363,222 $ 4,626 $ 62,694 $ 202,699,891 $ 228,498,488 0.54%

TOTAL $ 282,755,185 $ 19,069,290 $ 33,631,816 $ 70,537 $ 268,192,659 $ 316,554,588 0.55%

LONE STAR COLLEGE

SUMMARY OF INVESTMENTS

AS OF JUNE 30, 2016

5

QUARTERLY INVESTMENT REPORT

FOR THE QUARTER ENDED

May 31, 2016

Prepared byAdministration and Finance Department

/s/ Carin HutchinsCarin Hutchins, Acting CFO

/s/ Tammy CortesTammy Cortes, Associate Vice Chancellor for Administration & Finance

The investment portfolio of Lone Star College is in compliance with the Public Funds Investment Act and the College's Investment Policy andstrategies.

6

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORTAS OF MAY 31, 2016

Quarter End Results by Investment Category:

Portfolio Book Value Unrealized Market Value Portfolio Book Value Unrealized Market ValueType of Security % 5/31/2016 Gains / (Losses) 5/31/2016 % 2/29/2016 Gains / (Losses) 2/29/2016

Money Market and Investment Pools 79.6% 225,151,265$ -$ 225,151,265$ 78.7% 254,782,529$ -$ 254,782,529$ Certificates of Deposit 1.9% 5,288,895 - 5,288,895 4.8% 15,639,605 - 15,639,605 Securities 18.5% 52,315,025 (27,880) 52,287,145 16.5% 53,325,572 (43,796) 53,281,776 Portfolio Total 100.0% 282,755,185$ (27,880)$ 282,727,305$ 100.0% 323,747,706$ (43,796)$ 323,703,910$

TexPool 0.52% TexPool 0.47%Logic 0.54% Logic 0.48%Lone Star 0.53% Lone Star 0.45%Southside 0.49% Southside 0.45%Capital One 0.30% Capital One 0.30%

NOTES:1) Yields for the above referenced accounts vary daily.2) The benchmark for the Unrestricted and Restricted Funds is the 90 day U.S. Treasury Bill. As of May 31, 2016 the rate was 0.35%.

Average Yield as of May 31, 2016 Average Yield as of February 29, 2016

7

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORTFOR THE QUARTER ENDED MAY 31, 2016

Beginning Beginning Ending Period EndingPurchase Maturity Face Buy Market Value Book Value Interest Securities Securities Disc. / Prem. Book Value Unrealized Market Value

Date Date Amount Yield 2/29/2016 2/29/2016 Payments Purchased Matured Amortization 5/31/2016 Gain / (Loss) 5/31/2016MONEY MARKET AND INVESTMENT POOLS

TexPool 9/23/1993 N/A N/A 223,347$ 223,347$ 211$ $ $ $ 256,346$ $ 256,346$ TexPool Prime 9/23/1993 N/A N/A 7,752,166 7,752,166 9,051 - - - 4,197,474 - 4,197,474 Logic 9/03/1996 N/A N/A 125,159,474 125,159,474 162,299 - - - 115,165,249 - 115,165,249 Lone Star-Govt 3/29/2001 N/A N/A 1,190,496 1,190,496 154 - - - 21,917 - 21,917Lone Star-Corporate 3/29/2001 N/A N/A 22,876 22,876 8 - - - 22,904 - 22,904Lone Star-Corporate Plus 1/26/2001 N/A N/A 84,642,354 84,642,354 96,266 - - - 69,658,987 - 69,658,987 Southside - MMA 4/27/2011 N/A N/A 20,684,399 20,684,399 25,176 - - - 20,709,575 - 20,709,575 Capital One 8/12/2013 N/A N/A 15,107,417 15,107,417 11,396 - - - 15,118,813 - 15,118,813

TOTAL N/A N/A 254,782,529 254,782,529 304,561 - - - 225,151,265 - 225,151,265

CERTIFICATES OF DEPOSITComerica 5/29/2014 5/02/2016 10,000,000 0.64% 10,112,970 10,112,970 11,144 - 10,124,114 - - - - Comerica 9/03/2014 10/3/2016 4,000,000 0.73% 4,041,635 4,041,635 7,260 - - - 4,048,895 - 4,048,895 Frost Bank 10/28/2015 4/28/2017 245,000 0.90% 245,000 245,000 - - - - 245,000 - 245,000 Frost Bank 10/28/2015 4/28/2017 250,000 0.90% 250,000 250,000 - - - - 250,000 - 250,000 Frost Bank 10/29/2015 5/01/2017 250,000 0.90% 250,000 250,000 - - - - 250,000 - 250,000 Frost Bank 11/04/2015 5/04/2017 245,000 0.85% 245,000 245,000 - - - - 245,000 - 245,000 Frost Bank 11/04/2015 5/04/2017 250,000 0.85% 250,000 250,000 - - - - 250,000 - 250,000

- - TOTAL 15,240,000 15,639,605 15,639,605 18,404 - 10,124,114 - 5,288,895 - 5,288,895

SECURITIESBOND 4/16/2014 04/15/2016 1,000,000 0.62% 1,000,550 1,000,000 - - 1,000,000 - - - - FHLB 2/12/2015 12/09/2016 4,000,000 0.70% 4,029,012 4,028,451 - - - 19,235 4,019,235 1,021 4,020,256 FFCB 3/04/2015 12/04/2017 3,000,000 1.09% 3,000,249 3,000,000 - - - - 3,000,000 - 3,000,000 FAMCA 9/08/2015 09/08/2017 2,000,000 1.00% 2,000,020 2,000,000 - - - - 2,000,000 258 2,000,258 FAMCA 1/26/2016 09/20/2016 3,000,000 0.53% 2,992,521 2,991,160 - - - (4,853) 2,995,147 1,121 2,996,268 FHLMC 1/26/2016 11/15/2016 4,000,000 0.58% 3,986,424 3,983,678 - - - (10,547) 3,989,453 2,335 3,991,788 FHLMC 1/27/2016 10/14/2016 3,000,000 0.56% 3,004,029 3,005,902 - - - 3,520 3,003,520 134 3,003,654 FHLB 2/12/2016 11/10/2016 8,000,000 0.49% 7,995,448 8,003,525 - - - 2,253 8,002,253 (3,821) 7,998,432 FHLMC 2/16/2016 10/13/2016 5,000,000 0.47% 4,985,875 4,985,050 - - - (9,072) 4,990,928 1,067 4,991,995 FHLMC 2/24/2016 11/07/2017 3,000,000 0.85% 2,996,394 3,000,000 - - - - 3,000,000 (5,052) 2,994,948 FAMCA 2/24/2016 09/28/2017 3,000,000 0.87% 2,991,537 2,994,545 - - - (4,585) 2,995,415 (1,955) 2,993,460 FFCB 10/26/2015 4/21/2017 3,000,000 0.57% 2,992,938 2,997,787 - - - (1,725) 2,998,275 (3,114) 2,995,161 FNMA 10/26/2015 4/27/2017 1,268,000 0.55% 1,272,889 1,276,474 - - - 6,631 1,274,631 (2,046) 1,272,585 FNMA 10/27/2015 4/27/2017 5,000,000 0.55% 5,019,280 5,033,230 - - - 26,003 5,026,003 (7,923) 5,018,080 FHLMC 10/27/2015 5/08/2017 5,000,000 0.51% 5,014,610 5,025,770 - - - 20,165 5,020,165 (9,905) 5,010,260

TOTAL 53,268,000 53,281,776 53,325,572 - 1,000,000 47,025 52,315,025 (27,880) 52,287,145

SUMMARYMONEY MARKET AND INVESTMENT POOLS 254,782,529 254,782,529 304,561 - - - 225,151,265 - 225,151,265 CERTIFICATES OF DEPOSIT 15,639,605 15,639,605 18,404 - 10,124,114 - 5,288,895 5,288,895 SECURITIES 53,281,776 53,325,572 - - 1,000,000 47,025 52,315,025 (27,880) 52,287,145 PORTFOLIO TOTAL 323,703,910$ 323,747,706$ 322,965$ -$ 11,124,114$ 47,025$ 282,755,185$ (27,880)$ 282,727,305$

Period Book / Market Transactions

8

LONE STAR COLLEGE INVESTMENT PORTFOLIO COMPOSITIONFOR THE QUARTER ENDED MAY 31, 2016

Texpool1%

LSIP25%

Logic41%

MMA13%

CDs2%

Securities18%

Texpool LSIP Logic MMA CDs Securities

9

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORT BY FUNDFOR THE QUARTER ENDED MAY 31, 2016

FUND: OPERATING (UNRESTRICTED)



TexPool 9/23/1993 N/A N/A 14,019$ 14,019$ 35$ -$ -$ -$ 46,841$ -$ 46,841$ TexPool Prime 9/23/1993 N/A N/A 7,721,638 7,721,638 9,011 - - - 4,166,906 - 4,166,906 Logic 9/03/1996 N/A N/A 20,420,271 20,420,271 20,184 - - - 10,175,456 - 10,175,456 Lone Star-Govt 3/29/2001 N/A N/A 1,189,956 1,189,956 153 - - - 21,377 - 21,377Lone Star-Corporate 3/29/2001 N/A N/A 3 3 - - - - 3 - 3 Lone Star-Corporate Plus 1/26/2001 N/A N/A 35,316,161 35,316,161 17,824 - - - 8,292,726 - 8,292,726 Southside - MMA 4/27/2011 N/A N/A 15,646,691 15,646,691 19,044 - - - 15,665,735 - 15,665,735

TOTAL 80,308,739 80,308,739 66,251 - - - 38,369,044 - 38,369,044

CERTIFICATES OF DEPOSITComerica 5/29/2014 5/02/2016 10,000,000 0.64% 10,112,970 10,112,970 11,144 - 10,124,114 - - - -Comerica 9/03/2014 10/3/2016 4,000,000 0.73% 4,041,635 4,041,635 7,260 - - - 4,048,895 - 4,048,895

TOTAL 14,000,000 14,399,605 14,399,605 18,404$ - 10,124,114 - 4,048,895 - 4,048,895

SECURITIES

BOND 4/16/2014 04/15/2016 1,000,000 0.62% 1,000,550 1,000,000 - - 1,000,000 - - - -FHLB 2/12/2015 12/09/2016 4,000,000 0.70% 4,029,012 4,028,451 - - - 19,235 4,019,235 1,021 4,020,256 FFCB 3/04/2015 12/04/2017 3,000,000 1.09% 3,000,249 3,000,000 - - - - 3,000,000 - 3,000,000 FAMCA 9/08/2015 09/08/2017 2,000,000 1.00% 2,000,020 2,000,000 - - 2,000,000 258 2,000,258 FAMCA 1/26/2016 09/20/2016 3,000,000 0.53% 2,992,521 2,991,160 - - (4,853) 2,995,147 1,121 2,996,268 FHLMC 1/26/2016 11/15/2016 4,000,000 0.58% 3,986,424 3,983,678 - - (10,547) 3,989,453 2,335 3,991,788 FHLMC 1/27/2016 10/14/2016 3,000,000 0.56% 3,004,029 3,005,902 - - 3,520 3,003,520 134 3,003,654 FHLB 2/12/2016 11/10/2016 8,000,000 0.49% 7,995,448 8,003,525 - - 2,253 8,002,253 (3,821) 7,998,432 FHLMC 2/16/2016 10/13/2016 5,000,000 0.47% 4,985,875 4,985,050 - - (9,072) 4,990,928 1,067 4,991,995 FHLMC 2/24/2016 11/07/2017 3,000,000 0.85% 2,996,394 3,000,000 - - 3,000,000 (5,052) 2,994,948 FAMCA 2/24/2016 09/28/2017 3,000,000 0.87% 2,991,537 2,994,545 - - (4,585) 2,995,415 (1,955) 2,993,460

TOTAL 39,000,000 38,982,059 38,992,311 - - 1,000,000 (4,049) 37,995,951 (4,892) 37,991,059

SUMMARY:MONEY MARKET AND INVESTMENT POOLS 80,308,739 80,308,739 66,251 - - - 38,369,044 - 38,369,044 CERTIFICATES OF DEPOSIT 14,399,605 14,399,605 18,404 - 10,124,114 - 4,048,895 - 4,048,895 SECURITIES 38,982,059 38,992,311 - - 1,000,000 (4,049) 37,995,951 (4,892) 37,991,059 PORTFOLIO TOTAL 133,690,403$ 133,700,655$ 84,655$ -$ 11,124,114$ (4,049)$ 80,413,890$ (4,892)$ 80,408,998$


10

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORT BY FUNDFOR THE QUARTER ENDED MAY 31, 2016

FUND: CONSTRUCTION IN PROGRESS



TexPool Prime N/A N/A 30,528$ 30,528$ 40$ -$ -$ -$ 30,568$ -$ 30,568$ Logic-CIP GO Bonds N/A N/A 104,657,506 104,657,506 142,004 - - - 104,907,985 - 104,907,985 Logic-CIP MTN Bond N/A N/A 40,363 40,363 55 - - - 40,418 - 40,418 Lone Star-Corporate N/A N/A 9,545 9,545 12 - - - 9,557 - 9,557 Lone Star-Corporate Plus N/A N/A 8,265,879 8,265,879 10,947 - - - 8,276,826 - 8,276,826 Southside - MMA N/A N/A 5,037,708 5,037,708 6,132 - - - 5,043,840 - 5,043,840 Capital One-MMA N/A N/A 10,071,087 10,071,087 7,597 - - - 10,078,684 - 10,078,684

TOTAL 128,112,616 128,112,616 166,787 - - - 128,387,878 - 128,387,878

CERTIFICATES OF DEPOSITFrost Bank 10/28/2015 4/28/2017 245,000 0.90% 245,000 245,000 - - - - 245,000 - 245,000 Frost Bank 10/28/2015 4/28/2017 250,000 0.90% 250,000 250,000 - - - - 250,000 - 250,000 Frost Bank 10/29/2015 5/01/2017 250,000 0.90% 250,000 250,000 - - - - 250,000 - 250,000 Frost Bank 11/04/2015 5/04/2017 245,000 0.85% 245,000 245,000 - - - - 245,000 - 245,000 Frost Bank 11/04/2015 5/04/2017 250,000 0.85% 250,000 250,000 - - - - 250,000 - 250,000

TOTAL 1,240,000 1,240,000 1,240,000 - - - - 1,240,000 - 1,240,000

SECURITIESFFCB 10/26/2015 4/21/2017 3,000,000 0.565% 2,992,938 2,997,787 - - - (1,725) 2,998,275 (3,114) 2,995,161 FNMA 10/26/2015 4/27/2017 1,268,000 0.545% 1,272,889 1,276,474 - - - 6,631 1,274,631 (2,046) 1,272,585 FNMA 10/27/2015 4/27/2017 5,000,000 0.548% 5,019,280 5,033,230 - - - 26,003 5,026,003 (7,923) 5,018,080 FHLMC 10/27/2015 5/08/2017 5,000,000 0.509% 5,014,610 5,025,770 - - - 20,165 5,020,165 (9,905) 5,010,260

TOTAL 14,268,000 14,299,717 14,333,261 - - - 51,074 14,319,074 (22,988) 14,296,086

SUMMARY:MONEY MARKET AND INVESTMENT POOLS 128,112,616 128,112,616 166,787 - - - 128,387,878 - 128,387,878 CERTIFICATES OF DEPOSIT 1,240,000 1,240,000 - - - 1,240,000 - 1,240,000 SECURITIES 14,299,717 14,333,261 - - 51,074 14,319,074 (22,988) 14,296,086 PORTFOLIO TOTAL 143,652,333$ 143,685,877$ 166,787$ -$ -$ 51,074$ 143,946,952$ (22,988)$ 143,923,964$


11

LONE STAR COLLEGE

INVESTMENT PORTFOLIO REPORT

FOR THE QUARTER ENDED MAY 31, 2016

FUND:


Date Date Amount Yield 2/29/2016 2/29/2016 Payments Purchased Matured Amortization 5/31/2016 Gain / (Loss) 5/31/2016MONEY MARKET AND INVESTMENT POOLSTexPool N/A N/A 209,328$ 209,328$ 176$ $ $ $ 209,505$ $ 209,505$ Logic N/A N/A 41,334 41,334 56 - - - 41,390 - 41,390 Lone Star-Govt N/A N/A 540 540 1 - - - 540 - 540 Lone Star-Corporate N/A N/A 13,328 13,328 16 - - - 13,344 - 13,344 Lone Star-Corporate Plus N/A N/A 41,060,314 41,060,314 67,495 - - - 53,089,435 - 53,089,435 Capital One-MMA N/A N/A 5,036,330 5,036,330 3,799 - - - 5,040,129 - 5,040,129

TOTAL 46,361,174 46,361,174 71,543 - - - 58,394,343 - 58,394,343

SUMMARY:MONEY MARKET AND INVESTMENT POOLS 46,361,174 46,361,174 71,543$ - - - 58,394,343 - 58,394,343 PORTFOLIO TOTAL 46,361,174$ 46,361,174$ 71,543$ -$ -$ -$ 58,394,343$ -$ 58,394,343$


INTEREST & SINKING

12

LONE STAR COLLEGE TOTAL INVESTMENT PORTFOLIO BOOK VALUEFOUR YEAR COMPARISON THROUGH MAY 31, 2016

This chart tracks LSC's total book value quarter-by-quarter to provide a historical perspective of the College's investment portfolio.

0.00

50,000,000.00

100,000,000.00

150,000,000.00

200,000,000.00

250,000,000.00

300,000,000.00

350,000,000.00

13

79.3%82.1% 83.7% 83.6% 83.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2012-13 2013-14 2014-15 2015-16

ACTUAL REVENUES AS A % OF BUDGET9/1 THROUGH 5/31

14

68.0%68.4% 68.1% 70.2% 70.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2012-13 2013-14 2014-15 2015-16

ACTUAL EXPENDITURES AS A % OF BUDGET 9/1 THROUGH 5/31

15

LONE STAR COLLEGE

Statement of Revenues and ExpendituresGeneral and Auxiliary FundsYTD May 31, 2016Unaudited

PRIOR YEAR PRIOR YEAR% ACTUAL ACTUAL % ACTUAL

FISCAL YTD TO BUDGET FISCAL YTD TO BUDGETBUDGET ACTUAL 75% FY ELAPSED 5/31/2015 75% FY ELAPSED

REVENUES:

State Appropriations $ 74,090,000 $ 52,905,428 71.4% $ 51,820,124 71.5%Tuition and Fees 111,840,000 89,035,826 79.6% 89,523,088 82.2%Taxes 125,260,000 124,279,286 99.2% 111,817,239 96.2%Investments 420,000 306,018 72.9% 285,245 81.5%Other 6,020,000 3,794,323 63.0% 3,599,119 61.5%Tuition/Growth Contingency 910,000 - 0.0% - 0.0%

Total Current Operations Revenues 318,540,000 270,320,881 84.9% 257,044,815 84.1%

Auxiliary Revenues 18,140,000 10,801,884 59.5% 11,111,195 74.1%

Total Revenues 336,680,000 281,122,765 83.5% 268,156,010 83.6%

Reserves 5,810,000 - 0.0% - 0.0%

Total Revenues and Reserves 342,490,000 281,122,765 268,156,010

EXPENDITURES:

Instruction-Academic 83,088,226 61,295,531 73.8% 59,382,035 75.6%Instruction-Workforce 30,155,665 24,085,389 79.9% 23,125,436 85.3%Public Service 757,194 554,196 73.2% 474,531 61.9%Academic Support 52,784,405 33,553,047 63.6% 34,954,988 61.7%Student Services 47,412,695 30,292,400 63.9% 28,507,264 65.2%Institutional Support 31,971,761 22,526,195 70.5% 24,162,635 70.9%Plant Operation and Maintenance 33,509,527 24,565,936 73.3% 23,774,949 66.2%Staff Benefits 27,110,527 21,048,314 77.6% 19,579,614 86.6%Growth Contingency 1,570,000 - 0.0% - 0.0%

Total Educational and General Expenditures 308,360,000 217,921,008 70.7% 213,961,452 71.0%

Repair, Replacement and Other Internally Designated 5,050,000 2,133,812 42.3% 1,653,594 32.7%

Auxiliary 18,580,000 12,191,651 65.6% 10,141,836 67.6%

Total Expenditures 331,990,000 232,246,471 70.0% 225,756,882 70.2%

Other Changes - Debt Service & Fund Transfers 10,500,000 6,979,844 6,913,344

Total Expenditures and Transfers 342,490,000 239,226,315 232,670,226

NET INCREASE (DECREASE) IN FUND BALANCESGeneral Funds 440,000 43,286,217 34,516,425Auxiliary Funds (440,000) (1,389,767) 969,359

TOTAL NET INCREASE (DECREASE) IN FUND BALANCES $ 0 $ 41,896,450 $ 35,485,784

16

LONE STAR COLLEGE

Balance Sheet

May 31, 2016

Unaudited

GASB Memorandum Memorandum

General & Reporting Totals Totals

ASSETS Restricted Entries (*) Current Year Prior Year

Cash, cash equivalents & investments $ 67,341,713 $ 205,683,786 $ (8,367) $ 273,017,132 $ 324,025,713

Accounts receivable, net 11,353,898 3,997,394 5,269,673 20,620,965 17,543,190

Prepaid and deferred expenses 12,022,713 - 12,022,713 7,763,280

Inventories, at cost 13,437 - - 13,437 45,853

Capital assets, net - - 783,665,578 783,665,578 752,548,159

TOTAL ASSETS 90,731,761 209,681,180 788,926,884 1,089,339,825 1,101,926,195

Deferred Outflows - - 8,864,100 8,864,100 -

TOTAL ASSETS AND DEFERRED OUTFLOWS $ 90,731,761 $ 209,681,180 $ 797,790,984 $ 1,098,203,925 $ 1,101,926,195

LIABILITIES AND FUND BALANCES

LIABILITIES:

Accounts payable & Accrued Absences Payable $ 1,921,064 $ 9,842,538 $ 11,763,602 $ 13,139,686

Deferred revenues 5,577,527 4,791,806 - 10,369,333 10,495,139

Accrued compensable absences payable - - -

Accrued interest payable - 9,120,817 - 9,120,817 1,420,363

Bonds payable - - 736,603,657 736,603,657 755,555,177

Net Pension Liability - - 48,590,998 48,590,998 -

Assets held in custody for others - 9,171,967 - 9,171,967 9,006,114

TOTAL LIABILITIES 7,498,591 32,927,128 785,194,655 825,620,374 789,616,479

Deferred Inflows - - 14,864,130 14,864,130 -

TOTAL LIABILITIES AND DEFERRED INFLOWS 7,498,591 32,927,128 800,058,785 840,484,504 789,616,479

TOTAL FUND BALANCES 83,233,170 176,754,052 (2,267,801) 257,719,421 312,309,716

TOTAL LIABILITIES, DEFERRED INFLOWS AND

FUND BALANCES $ 90,731,761 $ 209,681,180 $ 797,790,984 $ 1,098,203,925 $ 1,101,926,195

* Includes GASB (Governmental Accounting Standards Board) reporting entries related to Capital Assets, Long Term Debt, and Pensions

Auxiliary

17

Financial Report and Consideration No. 2 (ACTION ITEM 5) Board Meeting 8-4-16

Request: Consideration of Adoption of the Recommended 2016-2017 Budgets


That the Board of Trustees adopt the 2016-2017 recommended budgets and authorize the Chancellor to approve expenditure budget transfers among the funds, as necessary and allowed by law, as long as such transfers do not result in a change in the total expenditures budget of $347,662,000.

Rationale: Following several months of study, planning, development and evaluation, the administration, in consultation with the Board of Trustees, recommends a budget that accurately reflects the System’s educational plan for 2016-2017.

The recommended budgets are as follows:

REVENUES:

SOURCE AMOUNT STATE ALLOCATIONS $74,051,000 STUDENT REVENUES 119,381,000 LOCAL TAXES 134,613,000 MISCELLANEOUS ACTIVITIES 19,617,000

TOTAL REVENUES $347,662,000

EXPENDITURES/USES:

OPERATING $301,350,000 OPERATING DEBT PAYMENT 7,500,000 REPAIRS AND REPLACEMENTS 5,562,000 STUDENT ACTIVITIES 2,760,000 TECHNOLOGY 12,380,000 CORPORATE COLLEGE 3,000,000 AUXILIARY 11,790,000 TOTAL EXPENDITURES/USES $344,342,000 ADDITIONS TO RESERVES 3,320,000 TOTAL EXPENDITURES/USES & ADDITIONS TO RESERVES $347,662,000

2016-2017 is the second year of the biennium, thus the State allocations remain the same as 2015-2016. Student revenues reflect an estimated 3% growth in enrollments, credit tuition will be increased by $2 per credit hour and discipline-based differential fees will be increased an average $4 per

Exhibit "I"

credit hour. These increases in tuition and fees were previously approved by the Board of Trustees at the March 3, 2016 meeting. Certified property values have not been received, but the preliminary rolls provided by the appraisal districts indicate that net taxable values will increase in both Harris and Montgomery Counties by an average of 8%. The 2016-2017 tax revenues are estimated using the same rate as the 2015-2016 budget. Once the certified rolls have been received, a recommendation will be taken to the Board of Trustees regarding the tax rate in September. It is estimated that the tax rate will remain the same, or be slightly lower. The 2016-2017 budget contains several initiatives in support of the College’s strategic priorities: Academic & Workforce Program Quality, Student Success, Culture, Partnerships and Financial Responsibility & Accountability. Compensation recommendations included in the budget are as follows:

• A 2% cost of living adjustment (minimum of $750) for all full-time employees hired prior to June 1, 2016, effective September 1, 2016

• A $2 per contact hour increase for adjunct faculty • A 2% increase for part-time staff • 20 new full-time faculty • A 7 % increase in group health insurance premiums

Fiscal Impact: The budget as presented is a balanced budget based on conservative

revenue estimates. Staff Resource: Steve Head 832-813-6515 Carin Hutchins 832-813-6737


Request: Consideration of Approval of Proposed Salary Schedule Changes for Deans of Instruction and Master of Fine Arts


That the Board of Trustees approve the salary schedule changes below with an effective date of September 1, 2016.

• Creation of band 091A for Deans of Instruction

• Creation of a separate faculty pay level for Masters of Fine Arts

Rationale: The new salary schedules address the challenges in recruiting academic deans and change the current faculty salary structure to recognize the Master of Fine Arts as a terminal degree in the field of study.

These changes were recommended by two Lone Star College committees and reviewed by Human Resources.

Fiscal Impact: Funds of approximately $90,000 for these changes are included in the recommended FY2016-17 budget.

Staff Resource: Link Alander 832-813-6832

Exhibit "J"

0 1 2 3 4 5 6 71 BA $40,000 $40,800 $41,616 $42,448 $43,297 $44,163 $45,046 $45,9472 MA $45,000 $45,899 $46,817 $47,754 $48,709 $49,683 $50,677 $51,6903 PhD $50,000 $51,001 $52,021 $53,061 $54,123 $55,205 $56,309 $57,435

4 Other $55,000 $56,101 $57,223 $58,367 $59,535 $60,726 $61,940 $63,179

0 1 2 3 4 5 6 71 BA $40,000 $40,800 $41,616 $42,448 $43,297 $44,163 $45,046 $45,9472 MA $45,000 $45,899 $46,817 $47,754 $48,709 $49,683 $50,677 $51,690MFA $46,650 $47,583 $48,535 $49,505 $50,495 $51,505 $52,535 $53,586

3 PhD $50,000 $51,001 $52,021 $53,061 $54,123 $55,205 $56,309 $57,4354 Other $55,000 $56,101 $57,223 $58,367 $59,535 $60,726 $61,940 $63,179

LSC _HRComp_07/21/2016

New Hire Faculty Pay Structure - 9 Months (175 Days)

LevelYears of Experience

9 Month Salary Schedule with MFA Level (175 days)

Current 9 Month Faculty Salary ScheduleCURRENT New Hire Faculty Pay Structure - 9 Months (175 Days)


9 Month Schedule with MFA

0 1 2 3 4 5 6 71 BA $46,171 $47,095 $48,036 $48,997 $49,977 $50,977 $51,996 $53,0362 MA $51,942 $52,981 $54,041 $55,122 $56,224 $57,348 $58,495 $59,6653 PhD $57,715 $58,870 $60,047 $61,248 $62,473 $63,723 $64,997 $66,297

4 Other $63,487 $64,756 $66,051 $67,372 $68,720 $70,094 $71,496 $72,926

0 1 2 3 4 5 6 71 BA $46,171 $47,095 $48,036 $48,997 $49,977 $50,977 $51,996 $53,0362 MA $51,942 $52,981 $54,041 $55,122 $56,224 $57,348 $58,495 $59,665MFA $53,847 $54,924 $56,023 $57,143 $58,286 $59,452 $60,641 $61,854

3 PhD $57,715 $58,870 $60,047 $61,248 $62,473 $63,723 $64,997 $66,2974 Other $63,487 $64,756 $66,051 $67,372 $68,720 $70,094 $71,496 $72,926


New Hire Faculty Pay Structure - 10.5 Months (202 Days)


10.5 Month Salary Schedule with MFA Level (202 days)

Current 10.5 Month Faculty Salary ScheduleCURRENT New Hire Faculty Pay Structure - 10.5 Months (202 Days)


10.5 Month Schedule with MFA

0 1 2 3 4 5 6 71 BA $52,343 $53,389 $54,457 $55,546 $56,657 $57,790 $58,946 $60,1252 MA $58,885 $60,063 $61,264 $62,489 $63,739 $65,014 $66,314 $67,6403 PhD $65,430 $66,738 $68,073 $69,435 $70,823 $72,240 $73,685 $75,158

4 Other $71,972 $73,412 $74,880 $76,378 $77,905 $79,463 $81,053 $82,674

0 1 2 3 4 5 6 71 BA $52,343 $53,389 $54,457 $55,546 $56,657 $57,790 $58,946 $60,1252 MA $58,885 $60,063 $61,264 $62,489 $63,739 $65,014 $66,314 $67,640MFA $61,045 $62,266 $63,511 $64,781 $66,077 $67,398 $68,746 $70,121

3 PhD $65,430 $66,738 $68,073 $69,435 $70,823 $72,240 $73,685 $75,1584 Other $71,972 $73,412 $74,880 $76,378 $77,905 $79,463 $81,053 $82,674


New Hire Faculty Pay Structure - 12 Months (229 Days)


12 Month Salary Schedule with MFA Level (229 days)

Current 12 Month Faculty Salary Schedule

CURRENT New Hire Faculty Pay Structure - 12 Months (229 Days)


12 Month Schedule with MFA

GRADE OLD MIN MID MAX

011 SP1 $26,000 $31,800 $39,600012 SP2 $27,000 $34,344 $42,768013 SP3 $27,994 $37,092 $46,189014 SP4 $30,233 $40,059 $49,885021 CS1 $31,609 $41,882 $52,155022 CS2 $36,889 $48,878 $60,867023 CS3 $42,169 $55,874 $69,579024 CS4 $47,449 $62,870 $78,291031 TE1 $31,609 $41,882 $52,155032 TE2 $36,889 $48,878 $60,867033 TE3 $42,169 $55,874 $69,579034 TE4 $47,449 $62,870 $78,291041 CO1 $35,033 $46,419 $57,804042 CO2 $39,246 $52,001 $64,756043 CO3 $43,459 $57,583 $71,707044 CO4 $47,672 $63,165 $78,659051 AN1 $44,941 $59,547 $74,153052 AN2 $51,591 $68,358 $85,125053 AN3 $58,241 $77,169 $96,098054 AN4 $64,891 $85,981 $107,070061 PR1 $47,865 $63,421 $78,977062 PR2 $55,665 $73,756 $91,847063 PR3 $63,465 $84,091 $104,717064 PR4 $71,265 $94,426 $117,587071 SV1 $41,564 $55,072 $68,581072 SV2 $44,058 $58,377 $72,695073 SV3 $46,701 $61,879 $77,057074 SV4 $49,503 $65,592 $81,681081 MG1 $56,744 $75,186 $93,628082 MG2 $60,360 $79,977 $99,594083 MG3 $63,976 $84,768 $105,560084 MG4 $67,592 $89,559 $111,527091 EX1 $84,502 $111,965 $139,42891A $97,177 $128,760 $160,342092 EX2 $103,082 $136,584 $170,085093 EX3 $116,662 $154,577 $192,492094 EX4 $125,741 $166,607 $207,473

Non-Faculty Salary Schedule2015-2016

Non-Exem

ptContracted


Request: Consideration of Approval of Annual Purchases of Technology Hardware, Software, and Services


That the Board of Trustees approve the purchase of technology hardware, software, and services in a total not-to-exceed sum of $10,000,000 during FY 2016-17. The Chancellor also recommends that the Board authorize him or a designee to execute individual contracts in excess of $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract. The Chancellor finally recommends to the Board that it expressly authorize him or a designee to execute the contracts detailed in Appendix A for the not-to-exceed sums listed therein.

Rationale: To enhance student success, the College has an aggressive plan to meet the technology needs of faculty, staff, and students. This pre-approval will enable the Office of Technology Services to acquire goods and services needed to upgrade enterprise systems and replace equipment that has reached end-of-life, as well as procure required consulting services.

Approving the technology hardware, software and services in advance dramatically improves project schedules and enables faculty, students, and staff to receive updated technology in the timeliest and most cost-effective manner.

The purchase of technology hardware, software, and services will be made in accordance with:

• Texas Education Code 44.031, through competitive bidprocesses, or

• Texas Government Code, Subchapter F, Sections 271.101-102,through Board approved purchasing cooperatives (upon completion of market analysis), or

• Texas Government Code 2254.003, or• Any other method approved by state law.

The Chancellor also represents to the Board that no combination of contracts, purchases, or expenditures under this Board Agenda Item will exceed $10,000,000. The Chancellor finally represents that funds from general obligation bonds will not be used for any expense relying on this Board Agenda Item.

Fiscal Impact: Funds for these purchases are included in the recommended FY 2016-17 operating and technology fund budgets.

Staff Resource: Link Alander Carin Hutchins

832-813-6832 832-813-6737

Exhibit "K"

APPENDIX A

Support, License Agreements, and Maintenance Contracts Exceeding $500,000 for Which the Chancellor Seeks Pre-Approval

Item Not-to-Exceed Amount Service Now Enterprise License Agreement $1,000,000 EMC VMware Enterprise License Agreement $750,000 Cisco Smartnet Enterprise License Agreement $750,000 Oracle-PeopleSoft Enterprise License Agreement $2,000,000 Microsoft Enterprise License Agreement $750,000


Request: Consideration of Approval of Annual Purchases of Bond-Funded Construction and Related Services


That the Board of Trustees approve the purchase of bond-funded construction and construction-related services in a total sum not exceeding $3,000,000 during FY 2016-17. The Chancellor also recommends that the Board authorize him or a designee to execute individual contracts in excess of $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each individual contract. Contract sums exceeding $500,000 will be individually presented to the Board for consideration of approval.

Rationale: This pre-approval of annual purchases of bond-funded construction and related services is necessary to respond expeditiously to construction requirements for projects with specific scheduling constraints, or which may develop into an emergency if delayed.

Approving the purchase of bond-funded construction and related services in advance will enable the Chancellor to address schedule constraints and meet project delivery deadlines. The purchase of these services will be made in accordance with procurement methods approved by state law and allowed by board policy including, but not limited to, competitive bids, requests for qualifications, and purchasing cooperative contract awards to area job order contractors. The Chancellor or a designee will also ensure that bond funds are only depleted in a manner consistent with the bond order of the College authorizing the series or series of bonds and the bond propositions approved at the November 4, 2014 election authorizing the purposes for which the bonds may be issued.

The Chancellor also represents to the Board that no combination of contracts, purchases, or expenditures under this Board Agenda Item will exceed $3,000,000.

Fiscal Impact: Funds for these purchases are available from the General Obligation Bonds, series 2015A, or any other general obligation bonds that may be issued during FY 2016-17.

Staff Resource: Jimmy Martin 281-290-2608 Carin Hutchins 832-813-6737

Exhibit "L"


Request: Consideration of Approval of Annual Purchases of Construction and Related Services


That the Board of Trustees approve the purchase of construction and construction-related services in a total sum not exceeding $7,000,000 during FY 2016-17. The Chancellor also recommends that the Board authorize him or a designee to execute individual contracts in excess of $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract. Contract sums exceeding $500,000 will be individually presented to the Board for consideration of approval.

Rationale: This pre-approval of annual purchases of construction and related services for renovation, minor construction, and repair and replacement (R&R) projects is necessary to respond expeditiously to construction requirements for projects with specific scheduling constraints, or which may develop into an emergency if delayed.

Approving the purchase of construction and related services in advance will enable the Chancellor to address schedule constraints and meet project delivery deadlines. The purchase of these services will be made in accordance with procurement methods approved by state law and allowed by board policy including, but not limited to competitive bids, requests for qualifications, and purchasing cooperative contract awards to area job order contractors.

The Chancellor also represents to the Board that no combination of contracts, purchases, or expenditures under this Board Agenda Item will exceed $7,000,000. The Chancellor finally represents that funds from general obligation bonds will not be used for any expense relying on this Board Agenda Item.

Fiscal Impact: Funds for these purchases are included in the recommended FY 2016-17 operating or auxiliary budgets.


Exhibit "M"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Agreements to Purchase Elevator Maintenance, Safety Inspections, and Repair Services


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute agreements for the purchase of elevator maintenance, safety inspections, and repair services from the vendors listed below for a total not-to-exceed amount of $800,000 and a contract term no longer than five years. The Chancellor recommends that the two vendors with the highest evaluation scores be awarded the contracts for Request for Proposals (“RFP”) No. 430.

Vendor Address Total Amount

(Max 5-year term)

Kone, Inc.

4607 World Houston Parkway, Suite 150 Houston, TX 77032 $550,000

Southwest Elevator d/b/a Oracle Elevator

11811 North Freeway Suite 222Houston, TX 77060 $250,000

The initial contract terms shall be for three years with an option to renew for two additional one-year periods.

Rationale: The College’s elevators require monthly maintenance, annual safety inspections and repairs. The College will maintain and repair its elevators while complying with original design and manufacturer recommendations. These services will ensure that College elevators are maintained with consideration for peak performance, safety and cleanliness. Timely safety inspections will certify that the equipment meets all applicable state regulations and safety codes.

In compliance with the provisions of Texas Education Code §44.031 (a), RFP No. 430 was publicly advertised and issued to 71 bidders and seven responses were received. The initial evaluations of the proposals were conducted based on pricing, qualifications, experience, references, quality of services, extent to which certified historically underutilized businesses (HUB), minority and/or veteran or women-owned businesses are utilized, past performance, long-term cost, enhanced services, and completeness and thoroughness of response. On-site presentations were made by the three firms receiving the highest proposal scores.

Exhibit "N"

Fiscal Impact: Funds for these purchases are included in the recommended FY 2016-17 budget. Funds for subsequent fiscal years will be included in future proposed budgets.



Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract to Purchase Pressure Washing Services


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract to purchase pressure washing services from Tier One Property Services, L.L.C. d/b/a Aztec Facility Services, 11000 S. Wilcrest Drive Suite 125, Houston, TX 77099, for an amount not-to-exceed $1,500,000 over five years.

Rationale: Lone Star College (“LSC”) requires the use of pressure washing services to maintain its high standards of cleanliness in the building exteriors and parking areas. The purpose of this contract is to establish pricing for a multi-year contract for all buildings and parking areas on an as needed basis. The contract does not obligate LSC to purchase a fixed amount of services over the term of the contract, but rather it will establish the pricing, terms, and conditions and specifications when the services are required.

In compliance with the provisions of Texas Government Code 44.031 (a), a Request for Proposals (RFP #431) was publicly advertised and issued to 98 bidders and three responses were received. The evaluation of the proposals was conducted based on cost; qualifications; experience and service needs met; references; quality of services; the extent to which certified historically underutilized business (HUB), minority and/or veteran or women-owned businesses are utilized; past performance; long-term cost; and enhanced services/completeness and thoroughness of response. It is recommended that the firm with the highest evaluation score be awarded the contract.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2016-17 budget. Funds for subsequent fiscal years will be included in future proposed budgets.

Staff Resource: Jimmy Martin 281-290-2608Carin Hutchins 832-813-6737

Exhibit " O"


Request: Consideration of Approval to Purchase Library Materials, Supplies, Services, and Resource Sharing Membership Fees for FY 2016-17


That the Board of Trustees approve the purchase of library materials, supplies, services, and resource sharing membership fees for FY 2016-17 in an amount not-to-exceed $1,287,000, and authorize the Chancellor or designee to execute any agreements related to these purchases including individual contracts in excess of $100,000.

Rationale: Library materials consist of serial and journal subscriptions (electronic databases, digital content, and information products), books, e-books, and media. This purchase also includes library services (periodical jobber and binding services), library equipment and supplies, and library or resource sharing membership fees and services provided by the Texas State Library and Archives Commission. The College uses these materials and services to support the faculty and student needs at the six main college libraries and associated centers.

As stipulated in House Bill 962, which was effective September 1, 2009, Education Code 44.031 does not apply to a purchase, acquisition, or license of library goods and services. Such purchases can be made in any manner authorized by law including, but not limited to a request for proposal process, statewide purchasing contracts and library or resource-sharing programs; however, the best value standard as defined by Texas Government Code Chapter 2155.074 must be met.

Fiscal Impact: Funds for these purchases are included in the recommended FY 2016-17 budgets.

Staff Resource: Carin Hutchins 832-813-6737

Exhibit "P"


Request: Consideration of Approval to Renew the Annual Insurance Policies for FY 2016-17 and the Agreements for the Administration of Student Liability and Medical Insurance


That the Board of Trustees approve the renewal of the annual insurance policies for FY 2016-17 with estimated premiums totaling $2.7 million for the coverage year as summarized in Appendix A, and the agreements for the administration of student liability and medical insurance outlined below.

Rationale: Lone Star College’s (“LSC”) current insurance policies provide comprehensive liability, property and casualty coverage. LSC requested competitive quotes from all available insurance carriers in the market. Proposals were evaluated for the adequacy of the coverage terms, deductible options and annual cost.

It is recommended that the Board approve the purchase of the insurance policies for the period September 1, 2016 through August 31, 2017 as outlined in Appendix A. Additional details of the specific coverage are provided in Appendix B.

STUDENT COVERAGE

Policies are made available to students that provide medical professional liability insurance for participation in health occupation internships, student health insurance for international students on F-1 visas, student interns and voluntary domestic students. Premiums for sponsored study-abroad programs are paid from the System’s approved budgets. Premiums for the Medical Professional Liability are collected when the student registers for the required class. Premiums for the student health insurance for F-1 visa students, student interns and voluntary domestic students are paid directly to the Student Health Insurance Plan administrator, Academic HealthPlans. It is recommended that the Board approve the following products for students:

(RENEWAL) Medical Professional Liability The policy, provided by the current and recommended carrier, Chicago Insurance Company, provides a policy for medical professional liability of $1,000,000 for each incident with a $3,000,000 aggregate for students participating in health occupation internships. The coverage is for claims arising out of real or alleged malpractice when the injury claimed is the result of professional error, accident, or omission. The current $12 premium per student will not be increased.

Exhibit "Q"

(RENEWAL) Student Health Insurance Plan Medical Insurance (International Students on F-1 Visas and Student Interns) The Student Health Insurance Plan, provided by the current and recommended carrier, Blue Cross and Blue Shield of Texas and administered by Academic HealthPlans, This insurance plan protects insured students on or off campus for weekends, holidays, summer vacations, at home or while traveling, 24 hours per day, for the contract period. This plan is compatible with the Affordable Care Act. Students attending LSC on F-1 Visas are required to have medical insurance. In addition, the majority of the System’s health occupations affiliation partners require student interns to carry medical insurance in order to participate in the program. The plan is administered by Academic Health Plans (AHP). The annual health insurance premium is $2,100, an increase of $400 (23.5%) over the current premium.

Fiscal Impact: Funds for insurance policy premiums are included in the recommended FY

2016-17 budget.


APPENDIX A

Insurance Coverage Recommendations for 2016-2017

Description

Insurance Company

Annual Premium FY15-16

Annual Premium FY16-17

Change Amount

%

Liability Policies

Commercial General Liability-Primary United Educators Risk Retention Group $131,789 $132,743 $954 0.72%

Educators Legal Liability United Educators Risk Retention Group

$233,721 $244,737 $11,016 4.71%

Excess Employers Liability. United Educators Risk Retention Group

$117,899 $117,577 ($322) -0.27%

Medical Professional Liability-Dental Evanston Insurance Co. $18,000 $18,000 $0 0.00%

Automobile Liability-Fleet and Truck Driving Academy

Texas Political Subdivisions (TPS)

$151,453 $145,032 ($6,421) -4.24%

Statutory WC & Employers' Liability Texas Political Subdivisions (TPS)

$524,170 $539,865 $15,695 2.99%

Property & Equipment

Fire & Extended Coverage & Equipment Breakdown

Liberty Mutual Fire Insurance Company $1,208,904 $1,415,917 $207,013 17.12%

Inland Marine-Mobile Equipment Hanover Insurance Company

$9,805 $12,146 $2,341 23.88%

Fine Arts & Small Museums ACE Fire Underwriters Insurance Co.

$1,125 $1,125 $0 0.00%

Commercial Crime

Employee Dishonesty Great American Insurance Co. $11,591 $11,591 $0 0.00%

Foreign Travel Policies

International Travel ACE American Insurance Co. $7,526 $13,181 $5,655 75.14%

Kidnap and Ransom Insurance Policy Hiscox Insurance Company

$5,800

$5,437

($363)

-6.26%

Foreign Liability ACE USA American Insurance Co.

$4,244

$5,375

$1,131

26.65%

TOTAL $2,426,027 $2,662,726 $236,699 9.76%

APPENDIX B

System-Wide Insurance Coverage Details for 2016-2017

(RENEWAL) General Liability (Including Police, Professional, Child Care & Multimedia Liability) The policy, provided by the current and recommended carrier United Educators Risk Retention Group, Inc. (UE), includes a $1,000,000 combined single limit for bodily injury and property damage with an annual aggregate of $3,000,000. The UE policy provides broader comprehensive coverage than other available general liability policies in the market. The annual premium is $132,700, an increase of $1,000 (.76%) over the current premium. The increase is due to a general rate increase as well as an increase in the number of employees, students, vehicles and other property covered by the policy.

(RENEWAL) Educators Legal Liability & Employment Practices Liability The policy, provided by the current and recommended carrier United Educators Risk Retention Group, Inc. (UE), includes professional liability coverage up to a limit of $5,000,000 for each claim with an annual aggregate coverage of $5,000,000. The self-insured retention is $100,000 per claim. The UE policy provides broader comprehensive coverage than other available professional liability policies in the market. The annual premium is $244,700, an increase of $11,000 (4.71%) over the current premium. The increase is due to increased claims activity and legal exposure for board members (industry wide), as well as an increase in the number of employees covered under the policy.

(RENEWAL) Excess Liability The policy, provided by the current and recommended carrier United Educators Risk Retention Group, Inc. (UE), provides up to $5,000,000 of coverage for claims in excess of the primary General Liability, Automobile Liability and Employer’s Liability policy limits. The annual premium is $117,600, a decrease of $300 (.25%) under the current premium. (RENEWAL) Medical Professional Liability (Dental Hygiene Clinic & Dentists at LSC-Kingwood) The policy, provided by the current and recommended carrier Evanston Insurance Company, includes professional liability coverage up to $1,000,000 with a $5,000 deductible for each claim and an annual aggregate coverage of $3,000,000. The current $18,000 premium will not be increased. (RENEWAL) Automobile Liability (Private Passenger & Light Commercial Vehicles) and Automobile Liability (Transportation Institute at LSC-North Harris) The policy, provided by the current and recommended self-insurance fund, Texas Political Subdivisions (TPS), provides coverage for the System’s vehicle fleet and for the vehicles used for instructional purposes by the Transportation Institute at LSC-North Harris. The automobile liability coverage provides a $1,000,000 combined single limit for bodily injury, property damage, and damage to rental vehicles. The collision and comprehensive coverage provides actual cash

value of the property subject to a $1,000 deductible per occurrence. TPS is a joint self-insurance fund and the System will enter into an interlocal agreement with TPS to participate in the fund’s plan. The System’s portion of funding for the program is $145,000, a decrease of $6,000 (3.97%) under the current premium. The decrease is due to a rate reduction per vehicle.

(RENEWAL) Workers’ Compensation & Employer’s Liability The policy, provided by the current and recommended self-insurance fund, Texas Political Subdivisions (TPS), provides coverage for $1,000,000 bodily injury by accident and $1,000,000 bodily injury by disease (each employee). The bodily injury by disease coverage has a $1,000,000 policy limit. TPS is a joint self-insurance fund. An interlocal agreement with TPS will allow the System to participate in the fund’s plan. The annual payment to the fund is $539,900, an increase of $15,700 (2.99%) over the current premium. The increase is due to an increase in payroll. (RENEWAL) Property (Fire & Extended Coverage) & Equipment Breakdown (Boiler & Machinery) The policy, provided by the current and recommended carrier Liberty Mutual Fire Insurance Company, provides coverage for the System’s real and personal property valued at approximately $1.3 billion, subject to a cumulative deductible for each occurrence of $25,000 for fire, $100,000 for flood, $100,000 for earth movement, $25,000 for breakdown of heating, air conditioning and electrical equipment and 2% of the value of covered property for wind damage associated with a named storm. This policy is subject to a $500,000,000 Real Property Loss Limit for any one occurrence. The sub-limit for extra expense coverage is $10,000,000. The annual premium is $1.4 million, an increase of $207,000 (17.35%) over the current premium. The increase is due to an increase in total property value based on a current professional property appraisal completed for the entire Lone Star College System and addition of new construction for FY17. (RENEWAL) Inland Marine The policy, provided by the current and recommended carrier Hanover Insurance Company, provides physical damage coverage for the replacement cost value of scheduled mobile equipment subject to a $1,000 deductible per occurrence. The annual premium is $12,100, an increase of $2,300 (23.47%) over the current premium. The increase is due to an increase in insured mobile equipment. (RENEWAL) Fine Arts & Small Museums The policy, provided by the current and recommended carrier ACE Fire Underwriters Insurance Company, provides coverage for fine art exhibitions at campus galleries with a limit of $500,000 for each loss. With the exception of outdoor sculptures, the deductible is $1,000 per claim. Outdoor sculptures have a $2,500 deductible. The current $1,100 premium will not be increased. (RENEWAL) Commercial Crime The policy, provided by the current and recommended carrier Great American Insurance Company, provides coverage for employee dishonesty, robbery and computer fraud. The policy limit is $1,000,000 for acts of employee dishonesty, forgery or alteration, loss of money and securities inside and outside the premises, computer fraud and funds transfer fraud. The deductible is $100,000 per occurrence. The current $11,600premium will not be increased.

(RENEWAL) Foreign Travel Policy The policy, provided by the current and recommended carrier, ACE American Insurance Company, provides a general liability policy of $1,000,000 for each occurrence of bodily injury and property damage with a $2,000,000 general aggregate limit. Coverage includes $1,000,000 for contingent automobile liability, $50,000 for hired automobile physical damage; $1,000,000 for voluntary compensation benefits, $1,000,000 coverage for executive assistance services, $100,000 coverage for accidental death & dismemberment, and $25,000 coverage for medical expenses. The annual premium is $5,400, an increase of $1,100 (26.6%) over the current premium. The increase is due to an increase in travel areas and the international market. (RENEWAL) Kidnap and Ransom Insurance Policy The policy, provided by the current and recommended carrier, Hiscox Insurance Company, Inc., provides worldwide ransom and kidnap coverage for directors, officers, trustees, employees, volunteers, students, and interns. There is a limit of $5,000,000 for each insured event of ransom, loss-in-transit and additional expenses. The annual premium is $5,400, a decrease of $400 (6.9%) under the current premium. (RENEWAL) Travel Insurance (Out of the Country Medical Insurance, Study Abroad & Faculty International Explorations) The policy, provided by the current and recommended carrier, ACE USA American Insurance Company, provides coverage for primary accident & sickness, emergency medical evacuation, repatriation of remains, emergency reunion, accidental death & dismemberment and 24-hour international emergency assistance for students, faculty and staff traveling outside the United States for study abroad or other educational purposes. The plan is administered by Academic Health Plans (AHP). The limit for accident or sickness expense benefits is $250,000 with no deductible per covered accident or sickness. The annual premium is $13,200, an increase of $5,900 (80.8%) over the current premium. The increase is due to increased travel and the international market.


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Additional Agreements or Amendments to Existing Agreements on behalf of Lone Star College for the Purchase of Electricity Services


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute additional agreements or amendments to existing agreements on behalf of Lone Star College with the Texas General Land Office (“GLO”), Stephen F. Austin Building, 1700 North Congress Avenue, Austin, Texas 78701, to purchase electricity services for a period not-to-exceed 60 months, beginning July 2019 through June 2024.

Rationale: Lone Star College’s (the “College” or “LSC”) current electricity supplier is Energy For Schools (“EFS”), a political subdivision organized under the authority of the Texas Local Government Code for the purpose of negotiating the purchase of electricity services on behalf of its members. The Board of Trustees approved the College’s membership in EFS in December 2003. EFS is currently buying LSC’s electricity from the GLO.

At the December 3, 2015 meeting, the Board of Trustees approved a similar item for the period December 4, 2015, through June 30, 2019. The previous agreement with EFS has expired. It was effective July 1, 2014 and ended June 30, 2016 and electricity was provided at a rate of $0.06749 per kWh. The current agreement with EFS, effective July 1, 2016 and ending June 30, 2019, provides electricity at a rate of $0.05685 per kWh. The current market rates for electricity after June 30, 2019 vary between $0.040 and $0.045 per kWh, approximately 20% below LSC’s current rate.

At this time, EFS is only willing to enter into contracts through June 2020. By executing a contract directly with the GLO, the significant price savings can be extended to June 2024.

Upon approval by the Board of Trustees, the Chancellor or designee will negotiate and execute a new agreement for electricity services for the College at a rate to be quoted by GLO for the period beginning July 1, 2019 for up to 60 months, or June 30, 2024. This rate must be accepted the same day it is received in order to execute a fixed rate agreement. In addition, as additional facilities open after June 30, 2019, the Chancellor or designee will negotiate and execute new agreements or amendments to existing agreements based on the most favorable terms and conditions available. LSC will not execute a contract unless there is at least a 15% reduction below the current contract price.

Exhibit "R"

This purchase is in accordance with Texas Government Code, Subchapter F, Sections 271.101-102, which allows a local government to participate in a cooperative purchasing program with another local cooperative organization.

Fiscal Impact: Electricity purchases under the current electrical agreement for FY 2016-

17 are projected to be approximately $4,872,000. Based on the forecasted volume of electricity purchases in June 2019 and a 20% reduction in the rate from the current contract, LSC could save approximately $800,000.

Staff Resource Jimmy Martin 281-290-2608

Carin Hutchins 832-813-6737


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract for Independent Audit Services


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract with the independent audit firm, Whitley Penn, LLP, 3411 Richmond Avenue, Suite 500, Houston, Texas 77046, for independent audit services in an amount not-to-exceed $220,000 for the FY 2016 and 2017 audits.

Rationale: Lone Star College submits annual audited financial statements prepared in accordance with generally accepted accounting principles and in conformance with the Texas Higher Education Coordinating Board’s Annual Financial Reporting Requirements for Texas Public Community and Junior Colleges.

On June 6, 2013, the Board of Trustees approved the Board Audit Committee to select a firm to provide independent audit services through a formal Request for Qualifications process in compliance with Texas Government Code 44.301 (a). Whitley Penn was selected to perform the independent audit services and has provided the services for the last three fiscal years.

Fiscal Impact: Funds for the annual audit are included in the FY 2015-16 budget. Funds for subsequent fiscal years will be included in future proposed budgets.

Staff Resource: Carin Hutchins 832-813-6737

Exhibit "S"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract to Purchase Classification Services


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract to purchase classification services from Precision Task Group, 9801 Westheimer, Suite 803, Houston, Texas 77042, in a not-to-exceed amount of $294,700.

Rationale: Employee classification and performance are key issues that impact Lone Star College’s (“College”) future success as a quality academic institution. It is a priority for the College to design a classification system that is easy to understand and communicate.

This project will develop a decision band matrix approach to staff and administrator classifications. In addition, the project will develop a classification system that is easy to understand with clear job descriptions and job families.

This purchase is in compliance with the requirements of Texas Education Code §44.031 (a). The Request for Proposals (RFP #440) was issued to eighteen (18) classification services providers and three (3) responses were received. Vendor proposals were evaluated based on cost, qualifications, experience, commitment of personnel, the quality of services, relevant references and various other factors. All firms were invited to a presentation/interview. It is recommended that the firm with the highest evaluation score be awarded the contract.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2016-17 budget.

Staff Resource: Link Alander 832-813-6832 Carin Hutchins 832-813-6737

Exhibit "T"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-CyFair Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program


That the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with M. Arthur Gensler Jr. & Associates, Inc. dba Gensler (“Gensler”), 711 Louisiana Street #300, Houston, Texas 77002, for the purchase of $204,631 in additional architectural services and a revised total contract amount of $1,623,381.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved Gensler to provide architectural services for projects at LSC-CyFair through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

Gensler was approved to provide these services for Phase 1, Group 1A projects at LSC-CyFair and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, heating, ventilation, and air conditioning (HVAC), and civil engineering.

This amendment provides for additional services including, but not limited to furniture design, graphics design, and printing.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A.


Exhibit "U"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-Kingwood Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program


That the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with WHR Architects, Inc. (“WHR”),111 Louisiana Street #26, Houston, Texas 77002, for the purchase of $198,907 in additional architectural services and a revised total contract amount of $1,241,361.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved WHR to provide architectural services for projects at LSC-Kingwood through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

WHR was approved to provide these services for Phase 1, Group 2 projects at LSC-Kingwood, and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, heating, ventilation, and air conditioning (HVAC), and civil engineering.

This amendment provides for additional services including, but not limited to additional civil engineering services, furniture design, graphic design, and printing.



Exhibit "V"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-Montgomery Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program


That the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with Smith & Company Architects, 1500 McGowen Street, Suite 150, Houston, Texas 77004, for the purchase of $128,810 in additional architectural services and a revised total contract amount of $608,010.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved Smith & Company Architects to provide design services for LSC-Montgomery projects through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

Smith & Company Architects was approved to provide services for the Phase 1, Group 3 projects at LSC-Montgomery, and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, heating, ventilation, and air conditioning (HVAC), and civil engineering.

This amendment provides for additional services including, but not limited to expanded traffic engineering services, furniture design, graphics design, and printing.



Exhibit "W"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-North Harris Architectural Firm for Design Services Related to the 2014 General Obligation Bond Construction Program


That the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with PBK Architects, Inc., 11 Greenway Plaza #2210, Houston, Texas 77046, for the purchase of additional architectural services in an amount not-to-exceed $409,629 for a total contract sum of $1,550,629. The Chancellor also recommends the Board expressly authorize this contract under Texas Education Code Section 51.9337(f), which requires the Board to expressly authorize amendments that increase a total contract sum in excess of $1,000,000.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved PBK Architects, Inc. to provide architectural services for projects at LSC-North Harris through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

PBK Architects, Inc. was approved to provide these services for the projects at LSC-North Harris, and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, HVAC, and civil engineering.

This amendment provides for additional services including, but not limited to electrical service relocation, central plant expansion, transportation infrastructure due diligence, and loop road relocation.



Exhibit "X"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-Tomball Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program


That the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with Page Southerland Page, Inc. d/b/a Page (“Page”), 1100 Louisiana, Suite 1, Houston, Texas 77002, for the purchase of $216,180 in additional architectural services and a revised total contract amount of $519,180.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved Page to provide design services for LSC-Tomball projects through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

Page was approved to provide these services for the Phase 1, Group 5 projects at LSC-Tomball, and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, heating, ventilation, and air conditioning (HVAC), and civil engineering.

This amendment provides for additional services including, but not limited to design and construction administration for the buildout of the surgical technology area, enhanced lab design, furniture design, and printing.



Exhibit "Y"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the LSC-University Park Architectural Firm for Additional Services Related to the 2014 General Obligation Bond Construction Program


That the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with Kirksey Architecture, 6909 Portwest Drive, Houston, Texas, 77024, for the purchase of $115,919 in additional architectural services and a revised total contract amount of $1,006,719. The Chancellor also recommends the Board expressly authorize this contract under Texas Education Code Section 51.9337(f), which requires the Board to expressly authorize amendments that increase a total contract sum in excess of $1,000,000.

Rationale: At the April 9, 2015 meeting, the Board of Trustees approved Kirksey Architecture to provide design services for LSC-University Park projects through a formal Request for Qualifications process in compliance with Texas Government Code §2254.004.

Kirksey Architecture was approved to provide these services for the Phase 1, Group 6A projects at LSC-University Park, and was subsequently awarded a contract for basic services including, but not limited to design, mechanical, electrical, plumbing, heating, ventilation, and air conditioning (HVAC), and civil engineering.

This amendment provides for additional services including furniture design, exterior signage, interior graphics, and printing.



Exhibit "Z"


Request: Consideration of Ratification Authorizing the Chancellor’s or Designee’s Execution of a Contract with the LSC-Kingwood and LSC-North Harris Commissioning Firm for Services Related to the 2014 General Obligation Bond Construction Program


That the Board of Trustees ratify the Chancellor’s or designee’s execution of a contract with Page Southerland Page, Inc. d/b/a Page (“Page”), 1100 Louisiana, Suite 1, Houston, Texas 77002, for the purchase of commissioning agent services in a sum not exceeding $365,420.

Rationale: At the October 1, 2015 meeting, the Board of Trustees approved Page to provide commissioning agent services for projects at LSC-Kingwood and LSC-North Harris through a formal Request for Qualifications process in compliance with Texas Government Code 2254.004.

This contract provides for the design phase services. Construction phase services will be brought back to the Board of Trustees for approval at a future meeting.



Exhibit "aa"


Request: Consideration of Ratification Authorizing the Chancellor’s or Designee’s Execution of a Contract with the LSC-Montgomery and LSC-Tomball Commissioning Firm for Services Related to the 2014 General Obligation Bond Construction Program


That the Board of Trustees ratify the Chancellor’s or designee’s execution of a contract with Affiliated Engineers, Inc., 1 East Greenway Plaza, Houston, Texas 77046, for the purchase of commissioning agent services in a sum not exceeding $218,080.

Rationale: At the October 1, 2015 meeting, the Board of Trustees approved Affiliated Engineers, Inc. to provide commissioning agent services for projects at LSC-Montgomery and LSC-Tomball through a formal Request for Qualifications process in compliance with Texas Government Code 2254.004.




Exhibit "bb"


Request: Consideration of Ratification of the Chancellor’s or Designee’s Execution of a Contract with the LSC-CyFair and LSC-University Park Commissioning Firm for Services Related to the 2014 General Obligation Bond Construction Program


That the Board of Trustees ratify the Chancellor’s or designee’s execution of a contract with Sebesta, Inc., 5300 Memorial Drive, Suite 390, Houston, Texas 77007, for the purchase of commissioning agent services in a sum not exceeding $170,463.

Rationale: At the October 1, 2015 meeting, the Board of Trustees approved Sebesta, Inc. to provide commissioning agent services for projects at LSC-CyFair and LSC-University Park through a formal Request for Qualifications process in compliance with Texas Government Code 2254.004.


Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2015A


Exhibit "cc"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract with the Program Management Firm for Additional Services Related to the Projects Under the 2014 General Obligation Bond Construction Program


That the Board of Trustees authorize the Chancellor or designee to execute a contract amendment with Jones Lang LaSalle (“JLL”), 1400 Post Oak Blvd., Suite 1100, Houston Texas 77056, in the sum of $209,333 for the purchase of additional program management services. This amendment would bring the new grand total of the contract to $4,157,386.

Rationale: At the February 5, 2015 meeting, the Board of Trustees approved JLL to provide program management services for projects under the 2014 General Obligation Bond Construction Program through a formal Request for Qualifications process in compliance with Texas Government Code §44.031.

JLL was approved to provide these services and was subsequently awarded a contract. Lone Star College now requires additional program management services for the East Aldine Satellite Center, which were not included in the original contract. This amendment provides for these additional services.


Staff Resource: Jimmy MartinCarin Hutchins

281-290-2608 832-813-6737

Exhibit "dd"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute the Guaranteed Maximum Price (“GMP”) Contract with the LSC-University Park Construction Manager at Risk (“CMAR”) Firm for Construction Services Related to the Building 12 and 13 Entrance Canopy and Parking Project


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute the GMP contract with the LSC-University Park CMAR firm, E.E. Reed Construction, L.P., 333 Commerce Green Blvd., Sugar Land, Texas, for construction services related to the Building 12 and 13 Entrance Canopy and Parking Project in a sum not-to-exceed $1,816,108.

Rationale: At the June 4, 2015 meeting, the Board of Trustees approved E.E. Reed Construction, L.P. to provide CMAR services for the construction of projects at LSC-University Park through a formal Request for Qualifications process in compliance with Texas Government Code §2269.251.

E.E. Reed Construction, L.P. solicited proposals from subcontractors for construction services related to this project based on the drawings prepared by the approved project architect, Kirksey Architects, Inc. Bids were provided to E.E. Reed Construction, L.P. from subcontractors and the GMP contracts were prepared.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, 2015A.


Exhibit "ee"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Easements and Agreements Related to the 2014 General Obligation Bond Construction Program at LSC-North Harris


That the Board of Trustees authorize the Chancellor or designee to execute easements and agreements related to the 2014 General Obligation Bond Construction Program at LSC-North Harris.

Rationale: Centerpoint Energy requires a temporary easement in order to provide and install equipment associated with the relocation of the electrical service to the campus. This is a temporary easement which will be replaced with a permanent easement once the equipment is installed.

Fiscal Impact: No costs are associated with granting this temporary easement to Centerpoint Energy.

Staff Resource: Jimmy Martin 281-290-2608

Exhibit "ff"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Construction Contract for Building Core Improvements at LSC-University Park Building 10, Level 5


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute a Job Order Contract with Horizon International Group, LLC, 4204 Bellaire Blvd. Suite 210, Houston, Texas 77025, for building core improvements at LSC-University Park Building 10, Level 5 in an amount not-to-exceed $200,000.

Rationale: Approval is requested for the cooperative purchase of construction services for building core improvements for Building 10, Floor 5.

This purchase is in compliance with the provision of Texas Education Code §44.031 (a, 4), which allows the use of interlocal contracts. This purchasewill be made through the Choice Partners National Purchasing Cooperative (a division of Harris County Department of Education), contract #15-041JN-08. A market analysis was performed to ensure the purchase represents the best value for the College.

Fiscal Impact: Funds for this purchase are included in the FY 2016-17 auxiliary budget.

Staff Resource: Jimmy Martin 281-290-2608Carin Hutchins 832-813-6737

Exhibit "gg"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Extend the Fire Academy Facility Use Agreement


That the Board of Trustees authorize the Chancellor or designee to execute an amendment to extend the Fire Academy facility use agreement with The Woodlands Township, 2801 Technology Forest Blvd., The Woodlands, Texas 77381, for two additional years for a sum not exceeding $110,000

Rationale: At the September 4, 2008 meeting, the Board of Trustees approved a contract between LSC-Montgomery and The Woodlands Fire Department, now known as The Woodlands Township, for use of the Fire Department’s 20,000 square foot training facility at a cost of $42,000 per year for a term of two years. The contract was subsequently amended for additional terms of two years in 2010, 2012 and 2014.

The agreement enables LSC–Montgomery to offer programs that are greatly needed in Montgomery County and to offer them in a cost-effective manner. Without such a partnership, the cost of building and maintaining a fire science and emergency personnel training facility would be prohibitive.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2016-17 budget. Funds for subsequent fiscal years will be included in future proposed budgets.

Staff Resource: Rebecca Riley 936-273-7222 Carin Hutchins 832-813-6737

Exhibit "hh"


Request: Consideration and Approval to Review and Ratify an Agreement for the Economic Development of Harris County and the Chancellor’s Execution of the Agreement


That the Board of Trustees review and ratify the Economic Development Funding Agreement with Harris County for an in-kind sum not exceeding $125,000 and the Chancellor’s execution of the agreement.

Rationale: Lone Star College (“College”) has participated in this Economic Development Program for several years. The College is awarded $125,000 if it will match the amount in-kind. The College provides this match of funding through services, equipment, and rentals.

Under Section I.G.1.04 of the College Policy Manual, the Chancellor has limited authority to take emergency action that is normally within the authority of the Board. Such authority is limited to occurrences that require urgent or immediate action including when such action is reasonably necessary to protect substantial personal or real property of the System. Harris County required an expedited execution of the Economic Development Funding Agreement which would have risked $125,000 in funding from Harris County to the College if the deadline had not been met.

Fiscal Impact: Funds for this agreement are included in the approved FY 2015-16 budgets.

Staff Resource: Amos McDonald 832-813-6621

Exhibit "ii"


Request: Consideration of Approval of Resolution Ratifying and Confirming the Terms and Provisions Relating to the Issuance of Lone Star College’s Revenue Financing System Refunding Bonds, Series 2016, Maintenance Tax Refunding Bonds, Series 2016, and Limited Tax General Obligation Refunding Bonds, Series 2016; Ratifying and Confirming the Defeasance of Certain Outstanding Bonds of the College; and Containing Other Matters Relating Thereto


That the Board of Trustees adopt the resolution, which affirms the pricing certificates for the three 2016 series of refunding bonds, the net present value debt service savings achieved by these series of refunding bonds, and the defeasance of certain outstanding bonds.

Rationale: This resolution reaffirms the Board’s approval of these actions. It has been several months since the Board’s initial resolutions approving these series of refunding bonds and the transactions have now been completed.

Fiscal Impact: This resolution has no fiscal impact not already approved by other Board resolutions; however, it reaffirms the Board’s approval of a course of action that saves the College approximately $81 million over the life of the College’s debt service.

Staff Resource: Mario Castillo 832-813-6655 Carin Hutchins 832-813-6737

Exhibit "jj"

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RESOLUTION

OF LONE STAR COLLEGE SYSTEM

RATIFYING AND CONFIRMING THE TERMS AND PROVISIONS RELATING TO THE ISSUANCE OF LONE STAR COLLEGE SYSTEM REVENUE FINANCING SYSTEM REFUNDING BONDS, SERIES 2016, MAINTENANCE TAX REFUNDING BONDS, SERIES 2016 AND LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016; RATIFYING AND CONFIRMING THE DEFEASANCE OF CERTAIN OUTSTANDING BONDS OF THE SYSTEM; AND CONTAINING OTHER MATTERS RELATING THERETO

Adopted: August 4, 2016

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A RESOLUTION RATIFYING AND CONFIRMING THE TERMS AND PROVISIONS RELATING TO THE ISSUANCE OF LONE STAR COLLEGE SYSTEM REVENUE FINANCING SYSTEM REFUNDING BONDS, SERIES 2016, MAINTENANCE TAX REFUNDING BONDS, SERIES 2016 AND LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016; RATIFYING AND CONFIRMING THE DEFEASANCE OF CERTAIN OUTSTANDING BONDS OF THE SYSTEM; AND CONTAINING OTHER MATTERS RELATING THERETO

THE STATE OF TEXAS §COUNTIES OF HARRIS, MONTGOMERY AND SAN JACINTO §LONE STAR COLLEGE SYSTEM §

Revenue Refunding Bonds

WHEREAS, pursuant to the terms of the Master Resolution of the Board of Trustees of the Lone Star College System (the “System”) dated June 27, 2000 and the Amended and Restated Eleventh Supplemental Resolution of the System dated December 3, 2015 (collectively, the “Revenue Refunding Resolution”), as authorized by Chapters 1207 and 1371 of the Texas Government Code, as amended (the “Act”), the Lone Star College System Revenue Financing System Refunding Bonds, Series 2016 (the “Revenue Refunding Bonds”) were sold and delivered to Loop Capital Markets LLC, as Representative to the Underwriters, pursuant to parameters established in the Revenue Refunding Resolution, with the Chancellor (the “Revenue Refunding Pricing Officer”) authorized to act on behalf of the System in the sale and delivery of the Revenue Refunding Bonds; and

WHEREAS, after review of all matters relating to the issuance, sale and delivery of the Revenue Refunding Bonds, including the refunding and defeasance of all or a portion of certain of the System’s outstanding Revenue Financing System bonds (the “Revenue Refunded Bonds”), all as provided for in the Revenue Refunding Bonds Pricing Certificate attached hereto as Appendix A, the Revenue Refunding Pricing Officer executed the Revenue Refunding Bonds Pricing Certificate on July 11, 2016.

Maintenance Tax Refunding Bonds

WHEREAS, pursuant to the terms of a resolution of the System dated February 4, 2016 (the “Maintenance Tax Refunding Resolution”), as authorized by the Act, the Lone Star College System Maintenance Tax Refunding Bonds, Series 2016 (the “Maintenance Tax Refunding Bonds”) were sold and delivered to Loop Capital Markets LLC, as Representative to the Underwriters, pursuant to parameters established in the Revenue Refunding Resolution, with the Chancellor (the “Maintenance Tax Refunding Pricing Officer”) authorized to act on behalf of the System in the sale and delivery of the Maintenance Tax Refunding Bonds; and

WHEREAS, after review of all matters relating to the issuance, sale and delivery of theMaintenance Tax Refunding Bonds, including the refunding and defeasance of all of the System’s outstanding Maintenance Tax Notes, Series 2009 (the “Maintenance Tax Refunded

3#5269409.4

Notes”), all as provided for in the Maintenance Tax Refunding Bonds Pricing Certificate attached hereto as Appendix B, the Maintenance Tax Refunding Pricing Officer executed the Maintenance Tax Refunding Bonds Pricing Certificate on July 11, 2016.

General Obligation Refunding Bonds

WHEREAS, pursuant to the terms of an order of the System dated December 3, 2015 (the “GO Refunding Order”), as authorized by the Act, the Lone Star College System Limited Tax General Obligation Refunding Bonds, Series 2016 (the “GO Refunding Bonds”) were sold and delivered to Citigroup Global Markets Inc., as Representative to the Underwriters, pursuant to parameters established in the GO Refunding Order, with the Chancellor (the “GO RefundingPricing Officer”) authorized to act on behalf of the System in the sale and delivery of the GO Refunding Bonds; and

WHEREAS, after review of all matters relating to the issuance, sale and delivery of the GO Refunding Bonds, including the refunding and defeasance of certain of the System’s outstanding general obligation bonds (the “GO Refunded Bonds”), all as provided for in the GORefunding Bonds Pricing Certificate attached hereto as Appendix C, the GO Refunding Pricing Officer executed the GO Refunding Bonds Pricing Certificate on July 19, 2016.

Defeasance

WHEREAS, the System determined to defease certain of its outstanding Revenue Financing System bonds (the “Revenue Defeased Bonds”) by depositing directly with a commercial bank or trust company an amount of money sufficient to provide for the payment or redemption of such bonds, with the Chancellor (the “Revenue Defeasance Pricing Officer”) authorized to act on behalf of the System in determining the terms of the defeasance of the Revenue Defeased Bonds, all as provided for in the Revenue Defeasance Pricing Certificate attached hereto as Appendix D, dated as of July 11, 2016.

WHEREAS, the System determined to defease certain of its outstanding general obligation bonds (the “GO Defeased Bonds”) by depositing directly with a commercial bank or trust company an amount of money sufficient to provide for the payment or redemption of the GO Defeased Bonds, with the Chancellor (the “GO Defeasance Pricing Officer”) authorized to act on behalf of the System in determining the terms of the defeasance of the GO Defeased Bonds, all as provided for in the GO Defeasance Redemption Certificate attached hereto as Appendix E, dated as of July 19, 2016; and

WHEREAS, the Revenue Refunding Bonds, the Maintenance Tax Refunding Bonds and the GO Refunding Bonds shall be referred to herein collectively as the “Refunding Bonds”; the Revenue Refunded Bonds, the Maintenance Tax Refunded Notes and the GO Refunded Bonds shall be herein referred to collectively as the “Refunded Bonds”, the Revenue Defeased Bonds and the GO Defeased Bonds shall be herein referred to collectively as the “Defeased Bonds”; the Revenue Refunding Pricing Officer, the Maintenance Tax Refunding Officer, the GO Refunding Officer, the Revenue Defeasance Pricing Officer and the GO Defeasance Pricing Officer shall be referred to herein collectively as the “Pricing Officer”; the Revenue Refunding Pricing Certificate, the Maintenance Tax Refunding Pricing Certificate, the GO Refunding Pricing

4#5269409.4

Certificate, the Revenue Defeasance Pricing Certificate and the GO Defeasance Redemption Certificate shall be referred to herein collectively as the “Pricing Certificates”; NOW, THEREFORE

BE IT RESOLVED BY THE BOARD OF TRUSTEES OF LONE STAR COLLEGE SYSTEM:

SECTION 1. Affirmation of Pricing Certificates.

The terms and provisions of the Refunding Bonds, as established by the Pricing Certificates, and the actions of the Pricing Officer in the execution of the Pricing Certificates is hereby approved and affirmed; and

SECTION 2. Affirmation of Present Value Savings.

The refunding and defeasance of the Refunded Bonds resulting in savings shown in the schedule below is hereby approved and affirmed.

Refunding Bonds Net Present Value Debt Service Savings

Revenue Refunding Bonds 26.678175%

Maintenance Tax Refunding Bonds 12.826435%

GO Refunding Bonds 16.496769%

SECTION 3. Affirmation of Defeasance of Outstanding Bonds.

The selection of the Defeased Bonds, the determination of the date on which the Defeased Bonds will be redeemed and/or defeased and the determination that it is in the best interest of the System to defease the Defeased Bonds on the respective defeasance dates is hereby affirmed and approved and it is hereby found and determined that such defeasance will provide annual debt service savings to the System.

[Remainder of Page Intentionally Left Blank]

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PASSED AND APPROVED this 4th day of August, 2016.

Secretary, Board of TrusteesLone Star College System

Chair, Board of TrusteesLone Star College System

[SEAL]

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APPENDIX A

REVENUE REFUNDING BONDS PRICING CERTIFICATE

[Attached]

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PRICING CERTIFICATE

Re: Lone Star College System Revenue Financing System Refunding Bonds, Series 2016 (the “Bonds”)

I, the undersigned Chancellor of Lone Star College System, (the “System”), do hereby make and execute this Pricing Certificate pursuant to a resolution adopted by the Board of Trustees of the System on December 3, 2015 (the “Resolution”) authorizing the issuance of the referenced Bonds. Capitalized terms used in this Pricing Certificate shall have the meanings given such terms in the Resolution.

A. As authorized by Article X of the Resolution, I have acted on behalf of the System in selling the Bonds to Loop Capital Markets LLC, Wells Fargo Bank, National Association, Blaylock Beal Van, LLC and Hutchinson, Shockey, Erley & Co. (together, the “Underwriter”) pursuant to the terms of the Purchase Agreement dated as of the date hereof. The Purchase Agreement between the Underwriter and the System with respect to the Bonds is hereby approved, and the terms of such Purchase Agreement are hereby determined to be the most advantageous reasonably attainable by the System. The Bonds shall have the terms set forth in this Pricing Certificate.

B. The Bonds shall have a Dated Date of August 1, 2016 and a Closing Date of August 10, 2016. The Bonds shall be issued in the aggregate principal amount of $37,910,000, for the purposes specified in Section 2.01 of the Resolution. The aggregate principal amount of the Bonds to be issued does not exceed the maximum principal amount of $80,000,000 authorized in Section 10.01 of the Resolution.

C. Interest on the Bonds shall accrue from the Closing Date and is payable on each February 15 and August 15, commencing February 15, 2017 (each an “Interest Payment Date”),until stated maturity or prior redemption thereof. The Bonds shall mature on February 15 in each of the years, in the principal amounts and shall bear interest at the per annum rates set forth in the following schedule:

MaturityAugust 15

PrincipalAmount

Interest Rate

MaturityAugust 15

PrincipalAmount

Interest Rate

2019 $650,000 5.00% 2029 $5,150,000 4.00%

2020 685,000 5.00 2030 5,355,000 5.00

2021 720,000 5.00 2031 5,625,000 5.002022 750,000 5.00 2032 1,230,000 3.25

2023 775,000 5.00 2033 1,265,000 3.25

2024 830,000 5.00 2034 1,315,000 4.00

2025 865,000 5.00 2035 1,365,000 4.00

2026 935,000 5.00 2036 1,420,000 4.002027 1,260,000 5.00 2037 1,475,000 4.00

2028 4,905,000 5.00 2038 1,335,000 4.00

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D. The System has reserved the option to redeem the Bonds maturing on and after August 15, 2026, in whole or in part before their respective scheduled maturity dates, on August 15, 2025, or on any date thereafter, at a redemption price equal to the principal amount thereof plus accrued interest to the date of redemption. Reference is made to Section 7.02 of the Resolution for additional information regarding the redemption of the Bonds prior to maturity.

E. The yield on the Bonds as calculated for federal arbitrage purposes is approximately 2.044451%, as determined by the System’s financial advisor, RBC Capital Markets LLC.

F. The Refunded Bonds to be refunded with a portion of the proceeds of the Bondsare set forth in Schedule I hereto. The Refunded Bonds are hereby called for redemption on the redemption date specified in Schedule I, and shall be redeemed at a redemption price equal to the principal amount thereof plus interest accrued thereon to the redemption date therefor.

G. In accordance with Article X of the Resolution, the refunding of the Refunded Bonds results in a present value savings in debt service of 26.678175% of the principal amount of the Refunded Bonds. A copy of the table provided by the System’s financial advisor, RBC Capital Markets LLC, and showing the debt service savings is attached hereto as Exhibit A.

H. In accordance with the other parameters contained in Article X of the Resolution, the undersigned does hereby find, certify and represent that the foregoing terms of the Bonds satisfy the following requirements and parameters contained within such Article X:

(i) the price to be paid for the Bonds is not less than 90% of the aggregate original principal amount of the Bonds plus accrued interest thereon from their date to their delivery;

(ii) none of the Bonds bear interest at a rate greater than the maximum rate allowed by Chapter 1204, Texas Government Code, as amended;

(iii) the aggregate principal amount of the Bonds authorized to be issued for the purposes described in Section 2.01 of the Resolution does not exceed $80,000,000 and is in an amount sufficient, in combination with the net premium from the sale of the Bonds, plus other available funds of the System, if any, to provide for the refunding of the maximum amount of the Refunded Obligations to be selected from the Refunded Obligation Candidates and the costs and expenses of issuance of the Bonds, including underwriter’s discount;

(iv) the present value savings in debt service resulting from the refunding of the Refunded Obligations is at least 4.00% of the principal amount of the Refunded Obligations, as shown by a table of calculations prepared by the System’s financial advisor and attached to any Pricing Certificate, or provide long-term fixed rate financing; and

(v) no Bond matures more than 40 years from the date of delivery thereof.

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I. The proceeds of the Bonds and other available funds shall be applied as follows:

(i) The amount of $44,962,344.73 (consisting of $37,910,000.00principal amount of Bond proceeds, plus $7,052,344.73 premium received from the sale of the Bonds), shall be deposited to the Escrow Fund in the form of cash or securities purchased with such proceeds and used to pay the redemption price of the Refunded Bonds;

(ii) Premium received from the sale of the Bonds in the amount of $235,532.69 shall be used to pay the costs of issuance.

(iii) Premium received from the sale of the Bonds in the amount of $167,706.53 shall be used the pay the underwriters’ discount.

(iv) Any amounts remaining after accomplishing the purposes set forth above shall be deposited into the Interest and Sinking Fund.

J. Wells Fargo Bank, National Association, with its Designated Payment Transfer Office in Minneapolis, Minnesota, is hereby designated as the Paying Agent/Registrar for the Bonds.

K. Wells Fargo Bank, National Association is not a depository for the System and is hereby designated as the Escrow Agent for the Bonds, and the form of Escrow Agreement is hereby approved.

L. Grant Thornton LLP is hereby designated as the verification agent.

[Signature Page Follows]

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Signature Page to Pricing Certificaet for Lone Star College System Revenue Refunding Financing System Refunding Bonds, Series 2016

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Schedule I

SCHEDULE OF REFUNDED BONDS

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Exhibit A

SCHEDULE OF SAVINGS

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Exhibit B

Form of Bond

a. Form of Bond.

REGISTEREDNO. _____

REGISTERED$________

United States of AmericaState of Texas

Counties of Harris, Montgomery and San Jacinto

LONE STAR COLLEGE SYSTEMREVENUE FINANCING SYSTEM REFUNDING BOND

SERIES 2016

INTEREST RATE: MATURITY DATE: CLOSING DATE: CUSIP NO.:

_____% August 15, 20__ August 10, 2016 ________

REGISTERED OWNER: ________________________

PRINCIPAL AMOUNT: ________________________

Lone Star College System (the “Issuer”), a political subdivision of the State of Texas, hereby promises to pay to the Registered Owner, specified above, or the registered assignee hereof (either being hereinafter called the “registered owner”) the principal amount, specified above, and to pay interest thereon, calculated on the basis of a 360-day year composed of twelve 30-day months, from the Closing Date specified above, to the Maturity Date specified above, or the date of redemption prior to maturity, at the interest rate shown above. Interest is payable on February 15, 2017, and semiannually on each August 15, and February 15 thereafter, except that if the date of authentication of this Bond is later than the first Record Date (hereinafter defined), such principal amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date.

The principal of and interest on this Bond are payable in lawful money of the United States of America, without exchange or collection charges, solely from funds of the Issuer required by the resolution authorizing the issuance of the Bonds to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided. The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at the Designated Payment/Transfer

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Office of Wells Fargo Bank, National Association, Minneapolis, Minnesota, or such other location designated by Paying Agent/Registrar for this Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each interest payment date by check, dated as of such interest payment date, and such check shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on eachsuch interest payment date, to the registered owner hereof, at the address of the registered owner, as it appears on the last business day of the month next preceding each such date (the “Record Date”) on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. In addition, interest may be paid by such other method acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner hereof. Any accrued interest due upon the redemption of this Bond prior to maturity as provided herein shall be paid to the registered owner upon presentation and surrender of this Bond for redemption and payment at the Designated Payment/Transfer Office of the Paying Agent/Registrar. The Issuer covenants with the registered owner of this Bond that on or before each principal payment date and interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the “Debt Service Fund” created for the benefit of all of the Issuer’s Parity Obligations, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due. Notwithstanding the foregoing, during any period in which ownership of the Bonds is determined by a book entry at a securities depository for the Bonds, payments made to the securities depository, or its nominee, shall be made in accordance with arrangements between the Issuer and the securities depository.

If the date for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which such banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due.

This Bond, one of a series of fully registered bonds specified in the title hereof, dated as of August 1, 2016, is issued in the aggregate principal amount of $37,910,000, and is authorized in accordance with the Constitution and laws of the State of Texas in and issued pursuant to an Eleventh Supplemental Resolution adopted by the Board of Trustees of the System on December 3, 2015, and the Master Resolution referred to therein (collectively, the “Bond Resolution”) and a pricing certificate executed pursuant to the Bond Resolution (the “Pricing Certificate,” and together with the Bond Resolution, the “Resolution”), for the purpose of refunding certain Outstanding Parity Obligations of the System and paying the costs of issuing the Bonds. Terms used herein and not otherwise defined have the meaning given in the Bond Resolution.

The Issuer has reserved the option to redeem the Bonds maturing on and after August 15, 2026, in whole or in part before their respective scheduled maturity dates, on August 15, 2025 or on any date thereafter, at a redemption price equal to the principal amount thereof plus accrued interest to the date of redemption. If less than all of the Bonds are to be redeemed, the Issuer shall determine the maturity or maturities and the amounts thereof to be

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redeemed and shall direct the Paying Agent/Registrar to call by lot the Bonds, or portions thereof, within such maturity and in such principal amounts, for redemption.

Principal amounts may be redeemed only in integral multiples of $5,000. If a Bond subject to redemption is in a denomination larger than $5,000, a portion of such Bond may be redeemed, but only in integral multiples of $5,000. Upon surrender of any Bond for redemption in part, the Paying Agent/Registrar, shall authenticate and deliver in exchange therefor a Bond or Bonds of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Bond so surrendered.

Notice of any redemption identifying the Bonds to be redeemed in whole or in part shall be given by the Paying Agent/Registrar at least thirty days prior to the date fixed for redemption by sending written notice by first class mail to the Owner of each Bond to be redeemed in whole or in part at the address shown on the Register. Such notices shall state the redemption date, the redemption price, the place at which Bonds are to be surrendered for payment and, if less than all Bonds outstanding of a particular maturity are to be redeemed, the numbers of the Bonds or portions thereof of such maturity to be redeemed. Any notice given as provided herein shall be conclusively presumed to have been duly given, whether or not the owner receives such notice. By the date fixed for redemption, due provision shall be made with the Paying Agent/Registrar for payment of the redemption price of the Bonds or portions thereof to be redeemed, plus accrued interest to the date fixed for redemption. When Bonds have been called for redemption in whole or in part and due provision has been made to redeem same as herein provided, the Bonds or portions thereof so redeemed shall no longer be regarded as outstanding except for the purpose of receiving payment solely from the funds provided for redemption, and the rights of the owners to collect interest which would otherwise accrue after the redemption date on the principal amounts called for redemption shall terminate on the date fixed for redemption.

In the Resolution, the Issuer reserves the right, in the case of an optional redemption, to give notice of its election or direction to redeem Bonds conditioned upon the occurrence of subsequent events. Such notice may state (i) that the redemption is conditioned upon the deposit of monies and/or authorized securities, in an amount equal to the amount necessary to effect the redemption, with the Paying Agent/Registrar, or such other entity as may be authorized by law, no later than the redemption date, or (ii) that the System retains the right to rescind such notice atany time on or prior to the scheduled redemption date if the System delivers a certificate of the System to the Paying Agent/Registrar instructing the Paying Agent/Registrar to rescind the redemption notice, and such notice and redemption shall be of no effect if such monies and/or authorized securities are not so deposited or if the notice is rescinded. The Paying Agent/Registrar shall give prompt notice of any such rescission of a conditional notice of redemption to the affected Owners. Any Bond subject to conditional redemption for which such redemption has been rescinded shall remain outstanding.

Any notice so mailed shall be conclusively presumed to have been duly given, whether or not the registered owner receives such notice. Notice having been so given and subject, in the case of an optional redemption, to any rights or conditions reserved by the System in the notice, the Bonds called for redemption shall become due and payable on the specified redemption date,

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and notwithstanding that any Bond or portion thereof has not been surrendered for payment, interest on such Bonds or portions thereof shall cease to accrue.

This Bond or any portion of portions hereof in any authorized denomination may be assigned and shall be transferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Resolution. The Issuer shall pay the Paying Agent/Registrar’s fees and charges, if any, for making such transfer or exchange, but the one requesting such transfer or exchange shall pay any taxes or other governmental charges required to be paid with respect thereto. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and, to the extent permitted by law, the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary.

All Bonds of this series are issuable solely as fully registered bonds, without interest coupons in the denomination of any integral multiple of $5,000.

In the event any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Resolution that it promptly will appoint a legally qualified substitute therefor, and promptly will cause written notice thereof to be mailed to the registered owners of the Bonds.

It is hereby certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that the series of Bonds of which this Bond is one constitute Parity Obligations under the Bond Resolution; and that the interest on and principal of this Bond, together with the other Bonds of this series are equally and ratably secured by and payable from a lien on and pledge of the Pledged Revenues, as defined in the Bond Resolution, on a parity with the Issuer’s outstanding Parity Obligations.

The Issuer has reserved the right, subject to the restrictions in the Bond Resolution, (i) to issue additional Parity Obligations which also may be secured by and made payable from a lien on and pledge of the Pledged Revenues, in the same manner and to the same extent as this Bond, and (ii) to amend the provisions of the Bond Resolution under the conditions provided in the Bond Resolution.

The registered owner hereof shall never have the right to demand payment of this Bond or the interest hereon out of any funds raised or to be raised by taxation or from any source whatsoever other than the Pledged Revenues.

By becoming the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Bond Resolution, agrees to be bound by such terms and provisions, acknowledges that the Bond Resolution is duly recorded and available for inspection in the official minutes and records of the Issuer, and agrees that the terms and

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provisions of this Bond and the Bond Resolution constitute a contract between each registered owner hereof and the Issuer.

IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile signature of the Chair of the Issuer and countersigned with the manual or facsimile signature of the Assistant Secretary of the Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile, on this Bond.

b. Form of Certificate of Paying Agent/Registrar.

CERTIFICATE OF PAYING AGENT/REGISTRAR

This is one of the Bonds referred to in the within mentioned Resolution. The series of Bonds of which this Bond is a part was originally issued as one Initial Bond which was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas.

WELLS FARGO BANK, N.A.,as Paying Agent/Registrar

Date: _________________________ By: _____________________________________ Authorized Signatory

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c. Form of Assignment.

d. Initial Bond Insertions.

(i) The Initial Bond shall be in the form set forth in paragraphs (a) and (c) of this Section, except that, in the event there is more than one maturity of Bonds:

(A) immediately under the name of the Bond, the headings “INTEREST RATE” and “MATURITY DATE” shall both be completed with the words “As Shown Below” and “CUSIP NO. __________” deleted;

(B) in the first paragraph of the Bond, the words “to the Maturity Date specified above” and “at the interest rate shown above” shall be deleted and the following shall be inserted a the end of the first sentence “…,with such principal to be paid in installments on August 15 in each of the years and in the principal amounts identified in the following schedule and with such installments being interest at the per annum rates set forth in the following schedule:”

(Information to be inserted from the Pricing Certificate); and

(C) the Initial Bond shall be numbered I-1.

(ii) The following Registration Certificate of Comptroller of Public Accounts shall appear on the Initial Bond:

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REGISTRATION CERTIFICATE OFCOMPTROLLER OF PUBLIC ACCOUNTS

OFFICE OF THE COMPTROLLER §OF PUBLIC ACCOUNTS § REGISTER NO. _____________________ THE STATE OF TEXAS §

I HEREBY CERTIFY THAT there is on file and of record in my office a certificate to the effect that the Attorney General of the State of Texas has approved this Bond, and that this Bond has been registered this day by me.

WITNESS MY SIGNATURE AND SEAL OF OFFICE this ____________________.

[SEAL] _________________________________ Comptroller of Public Accounts

of the State of Texas

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APPENDIX B

MAINTENANCE TAX REFUNDING BONDS PRICING CERTIFICATE

[Attached]

#5269409.4

PRICING CERTIFICATE

Re: Lone Star College System Maintenance Tax Refunding Bonds, Series 2016 (the “Bonds”)

I, the undersigned Chancellor of Lone Star College System (the “System”), do hereby make and execute this Pricing Certificate pursuant to a resolution adopted by the Board of Trustees of the System on February 4, 2016 (the “Resolution”) authorizing the issuance of the referenced Bonds. Capitalized terms used in this Pricing Certificate shall have the meanings given such terms in the Resolution.

A. As authorized by Article VII of the Resolution, I have acted on behalf of the System in selling the Bonds to Loop Capital Markets LLC and Hutchinson, Shockey, Erley & Co. (together, the “Underwriter”) pursuant to the terms of the Purchase Agreement dated as of the date hereof. The Purchase Agreement between the Underwriter and the System with respect to the Bonds is hereby approved, and the terms of such Purchase Agreement are hereby determined to be the most advantageous reasonably attainable by the System. The Bonds shall have the terms set forth in this Pricing Certificate.

B. The Bonds shall have a Dated Date of August 1, 2016 and a Closing Date of August 10, 2016. The Bonds shall be issued in the aggregate principal amount of $11,450,000, for the purposes specified in Section 3.01 of the Resolution. The aggregate principal amount of the Bonds to be issued does not exceed the maximum principal amount of $30,000,000 authorized in Section 3.01 of the Resolution.

C. Interest on the Bonds shall accrue from the Closing Date and is payable on each March 15 and September 15, commencing March 15, 2017 (each an “Interest Payment Date”),until stated maturity or prior redemption thereof. The Bonds shall mature on September 15 in each of the years, in the principal amounts and shall bear interest at the per annum rates set forth in the following schedule:

Maturity (September 15)

Principal Amount Interest Rate

2022 $2,060,000 5.00%2023 2,175,000 5.002024 2,290,000 5.002025 2,405,000 5.002026 2,520,000 5.00

D. The Bonds are not subject to optional redemption. Reference is made to Article IV of the Resolution for additional information regarding the redemption of the Bonds prior to maturity.

E. The yield on the Bonds as calculated for federal arbitrage purposes is approximately 1.471560%, as determined by the System’s financial advisor, RBC Capital Markets LLC.

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F. The Refunded Bonds to be refunded with a portion of the proceeds of the Bondsare set forth in Schedule I hereto. The Refunded Bonds are hereby called for redemption on the redemption date specified in Schedule I, and shall be redeemed at a redemption price equal to the principal amount thereof plus interest accrued thereon to the redemption date therefor.

G. In accordance with Article VII of the Resolution, the refunding of the Refunded Bonds results in a present value savings in debt service of 12.826435% of the principal amount of the Refunded Bonds. A copy of the table provided by the System’s financial advisor, RBC Capital Markets LLC, and showing the debt service savings is attached hereto as Exhibit A.

H. In accordance with the other parameters contained in Article VII of the Resolution, the undersigned does hereby find, certify and represent that the foregoing terms of the Bonds satisfy the following requirements and parameters contained within such Article VII:

(i) the price to be paid for the Bonds is not less than 90% of the aggregate original principal amount of the Bonds plus accrued interest thereon from their date to their delivery;

(ii) none of the Bonds bear interest at a rate in excess of the maximum rate allowed by Chapter 1204, Texas Government Code, as amended;

(iii) the aggregate principal amount of the Bonds authorized to be issued for the purposes described in Section 3.01 of the Resolution does not exceed the limits described in that Section;

(iv) the refunding of the Refunded Notes produces a net present value debt service savings of at least 2.00% of the principal amount of the Refunded Notes; and

(v) no Bond matures more than 40 years after the Closing Date.

I. The proceeds of the Bonds and other available funds shall be applied as follows:

(i) The amount of $14,405,438.56 (consisting of $11,450,000.00principal amount of Bond proceeds, plus $2,955,438.56 premium received from the sale of the Bonds), shall be deposited to the Escrow Fund in the form of cash or securities purchased with such proceeds and used to pay the redemption price of the Refunded Bonds;




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J. In accordance with Section 16.01(a) of the Resolution, the information to be provided pursuant to the Rule shall include all quantitative financial information and operating data with respect to the System of the general type included in the Official Statement in Tables 1-5 and 7-13 in Appendix A, Appendix B, and Appendix D, and audited financial statements of the System, if audited financial statements are then available, and if not provided as part such financial information and operating data, audited financial statements of the System, when and if available.

K. Wells Fargo Bank, National Association, with its Designated Payment Transfer Office in Minneapolis, Minnesota, is hereby designated as the Paying Agent/Registrar for the Bonds.

L. Wells Fargo Bank, National Association is not a depository for the System and is hereby designated as the Escrow Agent for the Bonds, and the form of Escrow Agreement is hereby approved.

M. Grant Thornton LLP is hereby designated as the verification agent.

N. The purchase of Escrow Securities from PNC Bank National Association is hereby approved.


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Signature Page to Pricing Certificate for Lone Star College System Maintenance TaxRefunding Bonds, Series 2016

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Schedule I


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Exhibit A

SCHEDULE OF SAVINGS

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Exhibit B

FORM OF BOND

(a) Form of Bond.

REGISTERED REGISTEREDNo. _______ $__________



LONE STAR COLLEGE SYSTEM MAINTENANCE TAX REFUNDING BOND

SERIES 2016


____________ September 15, 20__ August 10, 2016 ______ ___

Lone Star College System (the “System”), in the Counties of Harris, Montgomery and San Jacinto, State of Texas, for value received, hereby promises to pay to

________________________________

or registered assigns, on the maturity date specified above, the sum of

_________________________ DOLLARS

unless the payment of the principal hereof shall have been paid or provided for, and to pay interest on such principal amount from the later of the Closing Date specified above or the most recent interest payment date to which interest has been paid or provided for until payment of such principal amount has been paid or provided for, at the per annum rate of interest specified above, computed on the basis of a 360-day year of twelve 30-day months, such interest to be paid semiannually on March 15 and September 15 of each year, commencing March 15, 2017.

The principal of this Bond shall be payable without exchange or collection charges in lawful money of the United States of America upon presentation and surrender of this Bond at the corporate trust office of Wells Fargo Bank, N.A., Minneapolis, Minnesota, or such other location designated by the Paying Agent/Registrar (the “Designated Payment/Transfer Office”), of the Paying Agent/Registrar or, with respect to a successor paying agent/registrar, at the Designated Payment/Transfer Office of such successor. Interest on this Bond is payable by check dated as of the interest payment date, mailed by the Paying Agent/Registrar to the registered owner at the address shown on the registration books kept by the Paying Agent/Registrar, or by such other customary banking arrangements acceptable to the Paying Agent/Registrar and the person to whom interest is to be paid; provided, however, that such person shall bear all risk and expense of such other customary banking arrangements. For the

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purpose of the payment of interest on this Bond, the registered owner shall be the person in whose name this Bond is registered at the close of business on the “Record Date,” which shall be the last business day of the month next preceding such interest payment date. In the event of a nonpayment of interest on a scheduled payment date, and for thirty days thereafter, a new record date for such interest payment (a “Special Record Date”) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the System. Notice of the Special Record Date and of the special payment date of the past due interest (the “Special Payment Date,” which date shall be fifteen days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the address of each owner of a Bond appearing on the books of the Paying Agent/Registrar at the close of business on the last business day preceding the date of mailing of such notice.

If the date for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, legal holiday, or day on which banking institutions in the city where the Paying Agent/Registrar is located are required or authorized by law or executive order to close, the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday, or day on which banking institutions are required or authorized to close, and payment on such date shall for all purposes be deemed to have been made on the original date payment was due.

This Bond is one of a series of fully registered bonds specified in the title hereof, dated as of August 1, 2016, issued in the aggregate principal amount of $11,450,000 (herein referred to as the “Bonds”), pursuant to a certain resolution (the “Bond Resolution”) adopted by the Board of Trustees of the System and a pricing certificate executed pursuant to the Bond Resolution (the “Pricing Certificate,” and, together with the Bond Resolution, the “Resolution”), for the purposes of refunding certain outstanding obligations of the System and paying the costs of issuing the Bonds.

The Bonds and the interest thereon are payable from the proceeds of a direct and continuing ad valorem tax levied, within the limits prescribed by law, against all taxable property in the System sufficient, together with certain available funds of the System on deposit in the interest and sinking fund for the Bonds, to provide for the payment of the principal of and interest on the Bonds, as described and provided in the Resolution.

The Bonds are not subject to optional redemption prior to maturity.

As provided in the Resolution, and subject to certain limitations therein set forth, this Bond is transferable upon surrender of this Bond for transfer at the Designated Payment/Transfer Office of the Paying Agent/Registrar with such endorsement or other evidence of transfer as is acceptable to the Paying Agent/Registrar; thereupon, one or more new fully registered Bonds of the same stated maturity, of authorized denominations, bearing the same rate of interest, and for the same aggregate principal amount will be issued to the designated transferee or transferees.

The System, the Paying Agent/Registrar, and any other person may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except interest shall be paid to the person in whose name this Bond is registered

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on the Record Date) and for all other purposes, whether or not this Bond be overdue, and neither the System nor the Paying Agent/Registrar shall be affected by notice to the contrary.

IT IS HEREBY CERTIFIED AND RECITED that the issuance of this Bond and the series of which it is a part is duly authorized by law; that all acts, conditions and things required to be done precedent to and in the issuance of the Bonds have been properly done and performed and have happened in regular and due time, form and manner, as required by law; that sufficient and proper provision for the levy and collection of ad valorem taxes has been made, within the limits prescribed by law, which when collected shall be appropriated exclusively to the timely payment of the principal of and interest on the Bonds; and that the total indebtedness of the System, including the Bonds, does not exceed any constitutional or statutory limitation.

IN WITNESS WHEREOF, the System has caused this Bond to be duly executed under its official seal in accordance with law.

____________________________________Secretary, Board of TrusteesLone Star College System

____________________________________Chair, Board of TrusteesLone Star College System

[SEAL]



This is one of the Bonds referred to in the within mentioned Resolution. The series of Bonds of which this Bond is a part was originally issued as one Initial Bond which was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas.

WELLS FARGO BANK, N.A., as Paying Agent/Registrar

Date: _________________________ By: ____________________________________Authorized Signatory


ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto (print or typewrite name, address and Zip Code of transferee): __________________________________

______________________________________________________________________________

(Social Security or other identifying number: ____________________) the within Bond and all rights hereunder and hereby irrevocably constitutes and appoints ____________________

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attorney to transfer the within Bond on the books kept for registration hereof, with full power of substitution in the premises.

Dated: ____________________________

Signature Guaranteed By:

___________________________________Authorized Signatory

NOTICE: The signature on this Assignment must correspond with the name of the registered owner as it appears on the face of the within Bond in every particular and must be guaranteed in a manner acceptable to the Paying Agent/Registrar.




(B) in the first paragraph the words “on the Maturity Date specified above, the sum of _______ DOLLARS” shall be deleted and the following will be inserted: “on September 15 in the years, in the principal installments and bearing interest at the per annum rates set forth in the following schedule:


(C) the Initial Bond shall be numbered I-1.


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____________________________________[SEAL] Comptroller of Public Accounts


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APPENDIX C

GO REFUNDING BONDS PRICING CERTIFICATE

[Attached]

#5269409.4

PRICING CERTIFICATE

Re: Lone Star College System Limited Tax General Obligation Refunding Bonds, Series 2016 (the “Bonds”)

I, the undersigned Chancellor of Lone Star College System (the “System”), do hereby make and execute this Pricing Certificate pursuant to an order adopted by the Board of Trustees of the System on December 3, 2015 (the “Order”) authorizing the issuance of the referenced Bonds. Capitalized terms used in this Pricing Certificate shall have the meanings given such terms in the Order.

A. As authorized by Article VII of the Order, I have acted on behalf of the System in selling the Bonds to Citigroup Global Markets Inc., Siebert Brandford Shank & Co., LLC, Frost Bank, Hilltop Securities Inc., Raymond James & Associates, Inc., and William Blair & Company, LLC (together, the “Underwriter”) pursuant to the terms of the Purchase Agreement dated as of the date hereof. The Purchase Agreement between the Underwriter and the System with respect to the Bonds is hereby approved, and the terms of such Purchase Agreement are hereby determined to be the most advantageous reasonably attainable by the System. The Bonds shall have the terms set forth in this Pricing Certificate.

B. The Bonds shall have a Dated Date of August 1, 2016 and a Closing Date scheduled for August 10, 2016. The Bonds shall be issued in the aggregate principal amount of $133,250,000, for the purposes specified in Section 3.01 of the Order. The aggregate principal amount of the Bonds to be issued does not exceed the maximum principal amount of $200,000,000 authorized in Section 3.01 of the Order. The Bonds are issued solely as Current Interest Bonds.

C. The Refunded Bonds to be refunded with a portion of the proceeds of the Bondsare set forth in Schedule I hereto. The Refunded Bonds are hereby called for redemption on the redemption date specified in Schedule I and shall be redeemed at a redemption price equal to the principal amount thereof plus interest accrued thereon to the redemption date therefor.

D. In accordance with Article VII of the Order, the refunding of the Refunded Bonds results in a present value savings in debt service of 16.496769% of the principal amount of the Refunded Bonds. A copy of the table provided by the System’s financial advisor, RBC Capital Markets LLC, and showing the debt service savings is attached hereto as Exhibit A.

E. Interest on the Bonds shall accrue from the Closing Date and is payable on each February 15 and August 15, commencing February 15, 2017 (each an “Interest Payment Date”),until stated maturity or prior redemption thereof. The Bonds shall mature on February 15 in each of the years, in the principal amounts and shall bear interest at the per annum rates set forth in the following schedule:

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Maturity Principal Amount

Interest Rate Maturity

Principal Amount

Interest Rate

2021 $ 5,105,000 5.00% 2031 $14,940,000 4.00%*** *** *** 2032 15,550,000 4.002026 6,655,000 5.00 2033 16,270,000 5.002027 6,990,000 5.00 2034 9,410,000 4.002028 13,055,000 5.00 *** *** ***2029 13,725,000 5.00 2038 17,200,000 4.002030 14,350,000 4.00

F. The Bonds are subject to optional redemption prior to maturity as set for the in the form of Bonds attached hereto as Exhibit B.

G. The Bonds are subject to mandatory sinking fund redemption as set forth in Exhibit B.

H. The yield on the Bonds as calculated for federal arbitrage purposes is approximately 2.229334%, as determined by the System’s financial advisor, RBC Capital Markets LLC.

I. In accordance with the other parameters contained in Article VII of the Order, the undersigned does hereby find, certify and represent that the foregoing terms of the Bonds satisfy the following requirements and parameters contained within such Article VII:

(vi) the price to be paid for the Bonds is not less than 90% of the aggregate original principal amount of the Bonds plus accrued interest thereon from their date to their delivery;

(vii) none of the Bonds bear interest at a rate in excess of the maximum rate allowed by Chapter 1204, Texas Government Code, as amended;

(viii) the aggregate principal amount of the Bonds authorized to be issued for the purposes described in Section 3.01 of the Order does not exceed the limits described in that Section;

(ix) the refunding of the Refunded Bonds produces a net present value debt service savings of at least 4.00% of the principal amount of the Refunded Bonds; and

(x) no Bond matures more than 40 years after the Closing Date.

J. The proceeds of the Bonds and other available funds shall be applied as follows:

(i) The amount of $160,577,747.66 (consisting of $133,250,000.00principal amount of Bond proceeds, plus $23,771,997.66 premium received from the sale of the Bonds, plus available funds of the

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System in the amount of $3,555,750.00), shall be deposited to the Escrow Fund in the form of cash or securities purchased with such proceeds and used to pay the redemption price of the Refunded Bonds;




K. In accordance with Section 11.01(a) of the Order, the information to be provided pursuant to the Rule shall include all quantitative financial information and operating data with respect to the System of the general type included in the Official Statement in Tables 1-5 and 7-13 in Appendix A, Appendix B, and Appendix D, and audited financial statements of the System, if audited financial statements are then available, and if not provided as part such financial information and operating data, audited financial statements of the System, when and if available.

L. Wells Fargo Bank, National Association, with its Designated Payment Transfer Office in Minneapolis, Minnesota, is hereby designated as the Paying Agent/Registrar and Escrow Agent for the Bonds.

M. Wells Fargo Bank, National Association is not a depository for the System and is hereby designated as the Escrow Agent for the Bonds, and the form of Escrow Agreement is hereby approved.

N. Grant Thornton LLP is hereby designated as the verification agent.

O. The purchase of Escrow Securities from Wells Fargo Securities, LLC is hereby approved.

P. In addition to the limitations provided in the Section 9.01 of the Order, the System may only defease, refund or discharge the Bonds when the payment of principal of and premium, if any, of such Bonds, plus interest thereon to the due date thereof (whether such due date be by reason of maturity, redemption, or otherwise) has been provided for by irrevocably depositing with the Paying Agent/Registrar or other authorized escrow agent, in trust,

(1) money sufficient to make such payment; or

(2) Governmental Securities to mature as to principal and interest in such amounts and at such times to insure the availability, without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation and expenses of the Paying Agent/Registrar or other authorized escrow agent.

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“Governmental Securities” for purposes of the Bonds means:

(a) direct noncallable obligations of the United States of America, including obligations that are unconditionally guaranteed by the United States of America; or

(b) noncallable obligations of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date of their acquisition or purchase by the System, are rated as to investment quality by a nationally recognized investment rating firm not less than “AAA” or its equivalent.

The System has the right, subject to satisfying the requirements of (1) and (2) above, to substitute other Governmental Securities for the Governmental Securities originally deposited, to reinvest the uninvested moneys on deposit for such defeasance and to withdraw for the benefit of the System moneys in excess of the amount required for such defeasance.

Upon such deposit as described above, such Bonds shall no longer be regarded to be outstanding or unpaid and will cease to be outstanding obligations secured by the Order or treated as debt of the System for purposes of taxation or applying any limitation on the System’s ability to issue debt or for any other purpose. After firm banking and financial arrangements for the discharge and final payment or redemption of the Bonds have been made as described above, all rights of the System to initiate proceedings to call the Bonds for redemption or take any other action amending the terms of the Bonds are extinguished; provided, however, that the right to call the Bonds for redemption is not extinguished if the System: (i) in the proceedings providing for the firm banking and financial arrangements, expressly reserves the right to call the Bonds for redemption; (ii) gives notice of the reservation of that right to the owners of the Bonds immediately following the making of the firm banking and financial arrangements; and (iii) directs that notice of the reservation be included in any redemption notices that it authorizes.


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Signature Page to Pricing Certificate for Lone Star College System Limited Tax GeneralObligation Refunding Bonds, Series 2016

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SCHEDULE I


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EXHIBIT A

SCHEDULE OF SAVINGS

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EXHIBIT B

FORM OF BOND

(b) a. Form of Bond.

REGISTERED REGISTEREDNo. _______ $__________



LONE STAR COLLEGE SYSTEM LIMITED TAX GENERAL OBLIGATION REFUNDING BOND

SERIES 2016


____________ ____________ August 10, 2016 ______ ___

Lone Star College System (the “System”), in the Counties of Harris, Montgomery and San Jacinto, State of Texas, for value received, hereby promises to pay to

________________________________

or registered assigns, on the maturity date specified above, the sum of

_________________________ DOLLARS

unless the payment of the principal hereof shall have been paid or provided for, and to pay interest on such principal amount from the later of the Closing Date specified above or the most recent interest payment date to which interest has been paid or provided for until payment of such principal amount has been paid or provided for, at the per annum rate of interest specified above, computed on the basis of a 360-day year of twelve 30-day months, such interest to be paid semiannually on February 15 and August 15 of each year, commencing February 15, 2017.

The principal of this Bond shall be payable without exchange or collection charges in lawful money of the United States of America upon presentation and surrender of this Bond at the corporate trust office of Wells Fargo Bank, National Association, Minneapolis, Minnesota, or such other location designated by the Paying Agent/Registrar (the “Designated Payment/Transfer Office”), of the Paying Agent/ Registrar or, with respect to a successor paying agent/registrar, at the Designated Payment/Transfer Office of such successor. Interest on this Bond is payable by check dated as of the interest payment date, mailed by the Paying Agent/Registrar to the registered owner at the address shown on the registration books kept by the Paying Agent/Registrar, or by such other customary banking arrangements acceptable to the Paying Agent/Registrar and the person to whom interest is to be paid; provided, however, that such person shall bear all risk and expense of such other customary banking arrangements. For the

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purpose of the payment of interest on this Bond, the registered owner shall be the person in whose name this Bond is registered at the close of business on the “Record Date,” which shall be the last business day of the month next preceding such interest payment date. In the event of a nonpayment of interest on a scheduled payment date, and for thirty days thereafter, a new record date for such interest payment (a “Special Record Date”) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the System. Notice of the Special Record Date and of the special payment date of the past due interest (the “Special Payment Date,” which date shall be fifteen days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the address of each owner of a Bond appearing on the books of the Paying Agent/Registrar at the close of business on the last business day next preceding the date of mailing of such notice.

If the date for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, legal holiday, or day on which banking institutions in the city where the Paying Agent/Registrar is located are required or authorized by law or executive order to close, the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday, or day on which banking institutions are required or authorized to close, and payment on such date shall for all purposes be deemed to have been made on the original date payment was due.

This Bond is one of a series of fully registered bonds specified in the title hereof, dated as of August 1, 2016, issued in the aggregate principal amount of $133,250,000 (herein referred to as the “Bonds”), pursuant to a certain order (the “Bond Order”) adopted by the Board of Trustees of the System and a pricing certificate executed pursuant to the Bond Order (the “Pricing Certificate,” and, together with the Bond Order, the “Order”), for the purposes of refunding certain outstanding obligations of the System and paying the costs of issuing the Bonds. This Bond is a Current Interest Bond.

The Bonds and the interest thereon are payable from the proceeds of a direct and continuing ad valorem tax levied, within the limits prescribed by law, against all taxable property in the System sufficient, together with certain available funds of the System on deposit in the interest and sinking fund for the Bonds, to provide for the payment of the principal of and interest on the Bonds, as described and provided in the Order.

The System has reserved the option to redeem the Bonds maturing on and after February 15, 2027, in whole or in part before their respective scheduled maturity dates, on February 15, 2026, or on any date thereafter, at a redemption price equal to the principal amount thereof plus accrued interest to the date of redemption. If less than all of the Bonds are to be redeemed, theSystem shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot the Bonds, or portions thereof, within such maturity and in such principal amounts, for redemption.

The Bonds maturing on February 15, 2038 (the “Term Bonds”) are subject to mandatory sinking fund redemption prior to their scheduled maturity, and will be redeemed by the District, in part at a redemption price equal to the principal amount thereof, without premium, plus

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interest accrued to the redemption date, on the dates and in the principal amounts shown in the following schedule:

$17,200,000 TERM BONDS MATURING IN THE YEAR 2038

Mandatory Redemption Date Principal Amount

February 15, 2036 $2,200,000February 15, 2037 $7,350,000February 15, 2038 (Maturity) $7,650,000

The Paying Agent/Registrar will select for redemption by lot, or by any other customary method that results in a random selection, the specific Term Bonds (or with respect to Term Bonds having a denomination in excess of $5,000, each $5,000 portion thereof) to be redeemed by mandatory redemption. The principal amount of Term Bonds required to be redeemed on any redemption date pursuant to the foregoing mandatory sinking fund redemption provisions hereof shall be reduced, at the option of the System, by the principal amount of any Term Bonds which, at least 45 days prior to the mandatory sinking fund redemption date (i) shall have been acquired by the System at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation, or (ii) shall have been redeemed pursuant to the optional redemption provisions hereof and not previously credited to a mandatory sinking fund redemption.

Not less than 30 days prior to a redemption date for the Bonds, the System shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid, to the Owners of the Bonds to be redeemed at the address of the Owner appearing on the registration books of the Paying Agent/Registrar at the close of business on the business day next preceding the date of mailing such notice.

In the Order, the System reserves the right, in the case of an optional redemption, to give notice of its election or direction to redeem Bonds conditioned upon the occurrence of subsequent events. Such notice may state (i) that the redemption is conditioned upon the deposit of moneys and/or authorized securities, in an amount equal to the amount necessary to effect the redemption, with the Paying Agent/Registrar, or such other entity as may be authorized by law,no later than the redemption date, or (ii) that the System retains the right to rescind such notice at any time on or prior to the scheduled redemption date if the System delivers a certificate of the System to the Paying Agent/Registrar instructing the Paying Agent/Registrar to rescind the redemption notice, and such notice and redemption shall be of no effect if such moneys and/or authorized securities are not so deposited or if the notice is rescinded. The Paying Agent/Registrar shall give prompt notice of any such rescission of a conditional notice of redemption to the affected Owners. Any Bond subject to conditional redemption for which such redemption has been rescinded shall remain outstanding.

Any notice so mailed shall be conclusively presumed to have been duly given, whether or not the registered owner receives such notice. Notice having been so given and subject, in the case of an optional redemption, to any rights or conditions reserved by the System in the notice, the Bonds called for redemption shall become due and payable on the specified redemption date, and notwithstanding that any Bond or portion thereof has not been surrendered for payment, interest on such Bonds or portions thereof shall cease to accrue.

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As provided in the Order, and subject to certain limitations therein set forth, this Bond is transferable upon surrender of this Bond for transfer at the Designated Payment/Transfer Office of the Paying Agent/Registrar with such endorsement or other evidence of transfer as is acceptable to the Paying Agent/Registrar; thereupon, one or more new fully registered Bonds of the same stated maturity, of authorized denominations, bearing the same rate of interest, and for the same aggregate principal amount will be issued to the designated transferee or transferees.

The System, the Paying Agent/Registrar, and any other person may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except interest shall be paid to the person in whose name this Bond is registered on the Record Date) and for all other purposes, whether or not this Bond be overdue, and neither the System nor the Paying Agent/Registrar shall be affected by notice to the contrary.

IT IS HEREBY CERTIFIED AND RECITED that the issuance of this Bond and the series of which it is a part is duly authorized by law; that all acts, conditions and things required to be done precedent to and in the issuance of the Bonds have been properly done and performed and have happened in regular and due time, form and manner, as required by law; that sufficient and proper provision for the levy and collection of ad valorem taxes has been made, within the limits prescribed by law, which when collected shall be appropriated exclusively to the timely payment of the principal of and interest on the Bonds; and that the total indebtedness of the System, including the Bonds, does not exceed any constitutional or statutory limitation.

IN WITNESS WHEREOF, the System has caused this Bond to be duly executed under its official seal in accordance with law.

____________________________________Secretary, Board of TrusteesLone Star College System

____________________________________Chair, Board of TrusteesLone Star College System

[SEAL]



This is one of the Bonds referred to in the within mentioned Order. The series of Bonds of which this Bond is a part was originally issued as one Initial Bond which was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas.

WELLS FARGO BANK, NATIONAL ASSOCIATION as Paying Agent/Registrar

Date: _________________________ By: ____________________________________Authorized Signatory

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ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto (print or typewrite name, address and Zip Code of transferee): __________________________________

______________________________________________________________________________

(Social Security or other identifying number: ____________________) the within Bond and all rights hereunder and hereby irrevocably constitutes and appoints ____________________ attorney to transfer the within Bond on the books kept for registration hereof, with full power of substitution in the premises.

Dated: ____________________________

Signature Guaranteed By:

___________________________________Authorized Signatory

NOTICE: The signature on this Assignment must correspond with the name of the registered owner as it appears on the face of the within Bond in every particular and must be guaranteed in a manner acceptable to the Paying Agent/Registrar.




(B) in the first paragraph the words “on the Maturity Date specified above, the sum of _______ DOLLARS” shall be deleted and the following will be inserted: “on February 15 in the years, in the principal installments and bearing interest at the per annum rates set forth in the following schedule:


(C) the Initial Bond shall be numbered ICI-1.


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____________________________________[SEAL] Comptroller of Public Accounts


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APPENDIX D

REVENUE DEFEASED BONDS PRICING CERTIFICATE

[Attached]

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PRICING CERTIFICATE

Re: Partial Defeasance and Redemption of Lone Star College System Revenue Financing System Bonds, Series 2012 (the “Series 2012 Bonds”) and Revenue Financing System Bonds, Series 2013 (the “Series 2013 Bonds”)

I, the undersigned officer of Lone Star College System (the “System”), do hereby make and execute this Pricing Certificate pursuant to a resolution adopted by the Board of Trustees of the System on December 3, 2015 (the “Resolution”) authorizing the defeasance and/orredemption of certain outstanding bonds issued by the System. Capitalized terms used in this Pricing Certificate shall have the meanings given such terms in the Resolution.

A. As authorized by Section 11.04 of the Resolution, I have acted on behalf of the System in selecting the Redeemed Bonds, determining the date on which the Redeemed Bonds will be redeemed and/or defeased, and all other related matters.

B. The maturities of the Series 2012 Bonds and the Series 2013 Bonds set forth in Schedule I hereto are hereby selected as the Redeemed Bonds and shall be defeased on July 28, 2016 (the “Defeasance Date”) by the deposit of funds sufficient to accomplish such defeasance with Wells Fargo Bank, National Association, as escrow agent (the “Escrow Agent”). Additionally, certain maturities of the Redeemed Bonds are subject to redemption prior to maturity, and such maturities are hereby called for redemption on the dates and at the prices set forth in Schedule I hereto.

C. In accordance with the parameters contained in Section 11.04 of the Resolution, the undersigned does hereby find and determine that it is in the best interest of the System to defease the Redeemed Bonds on the Defeasance Date and that the amount of additional funds of the System being used to defease the Redeemed Bonds does not exceed $30,000,000.

D. The form of Escrow Agreement is hereby approved. The Escrow Agent is not a depository for the System.

E. Grant Thornton LLP is hereby designated as the verification agent for the Series 2013 Bonds that are Redeemed Bonds, and shall verify that amounts deposited with the Escrow Agent on the Defeasance Date are sufficient to cause the defeasance of the Series 2013 Bonds that are Redeemed Bonds on such date. The paying agent for the Series 2012 Bonds will certify as to the sufficiency of the deposit made on the Defeasance Date to cause the defeasance of the Series 2012 Bonds that are Redeemed Bonds.

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Signature Page to Pricing Certificate for Partial Defeasance of Lone Star College SystemRevenue Financing System Refunding Bonds, Series 2012 and Series 2013

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Schedule I


Lone Star College System Revenue Financing System Bonds, Series 2012

Lone Star College System Revenue Financing System Bonds, Series 2013

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APPENDIX E

GO DEFEASED BONDS REDEMPTION CERTIFICATE

[Attached]

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REDEMPTION CERTIFICATE

Re: Partial Defeasance of Lone Star College System Limited Tax General Obligation Bonds, Series 2010A (the “Series 2010A Bonds”)

I, the undersigned Chancellor of Lone Star College System (the “System”), do hereby make and execute this Redemption Certificate pursuant to an order adopted by the Board of Trustees of the System on December 3, 2015 (the “Order”) authorizing the referenced defeasance. Capitalized terms used in this Redemption Certificate shall have the meanings given such terms in the Order.

A. As authorized by Article X of the Order, I have acted on behalf of the System in selecting the Redeemed Bonds, determining the date on which the Redeemed Bonds will be defeased, and all other related matters.

B. The partial maturity of the Series 2010A Bonds set forth in Schedule I hereto is hereby selected as the Redeemed Bonds and shall be defeased on August 10, 2016 (the “Defeasance Date”) by the deposit of funds sufficient to accomplish such defeasance with Wells Fargo Bank, National Association, as escrow agent (the “Escrow Agent”). The Redeemed Bonds are not subject to redemption prior to maturity.

C. In accordance with the parameters contained in Section 10.04 of the Order, the undersigned does hereby find and determine that it is in the best interest of the System to defease the Redeemed Bonds on the Defeasance Date and that the amount of additional funds of the System being used to defease the Redeemed Bonds does not exceed $200,000,000.

D. The form of Escrow Agreement relating to the defeasance of the Redeemed Bonds is hereby approved. The Escrow Agent is not a depository for the System.

E. Grant Thornton LLP is hereby designated as the verification agent for the Redeemed Bonds, and shall verify that amounts deposited with the Escrow Agent on the Defeasance Date are sufficient to cause the defeasance of the Redeemed Bonds on such date.


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Signature Page to Redemption Certificate for Lone Star College System Limited Tax General Obligation Bonds, Series 2010A

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SCHEDULE I

SCHEDULE OF REDEEMED BONDS

Lone Star College System Limited Tax General Obligation Bonds, Series 2010A

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CERTIFICATE FOR RESOLUTION

THE STATE OF TEXAS §COUNTIES OF HARRIS, MONTGOMERY AND SAN JACINTO §LONE STAR COLLEGE SYSTEM §

I, the undersigned officer of the Board of Trustees of Lone Star College System, hereby certify as follows:

1. The Board of Trustees of Lone Star College System convened in a regular meeting on the 4th day of August, 2016, at the regular meeting place thereof, within said System, and the roll was called of the duly constituted officers and members of said Board, to wit:

Linda S. Good, JD Chair, Position 7Kyle A. Scott, Ph. D. Vice Chair, Position 2Ron Trowbridge, Ph. D. Secretary, Position 8Alton Smith. Ed.D. Assistant Secretary, Position 3David Holsey, DDS Trustee, Position 1Art Murillo Trustee, Position 4David A. Vogt Trustee, Position 5Bob Wolfe, JD, CPA Trustee, Position 6Ken E. Lloyd Trustee, Position 9

and all of said persons were present, except the following absentee(s): ____________________,thus constituting a quorum. Whereupon, among other business, the following was transacted at said meeting: a written

A RESOLUTION RATIFYING AND CONFIRMING THE TERMS AND PROVISIONS RELATING TO THE ISSUANCE OF LONE STAR COLLEGE SYSTEM REVENUE FINANCING SYSTEM REFUNDING BONDS, SERIES 2016, MAINTENANCE TAX REFUNDING BONDS, SERIES 2016 AND LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016; RATIFYING AND CONFIRMING THE DEFEASANCE OF CERTAIN OUTSTANDING BONDS OF THE SYSTEM; AND CONTAINING OTHER MATTERS RELATING THERETO

was duly introduced for the consideration of said Board and read in full. It was then duly moved and seconded that said resolution be adopted; and, after due discussion, said motion, carrying with it the adoption of said resolution, prevailed and carried by the following vote:

Member(s) shown present above voted “Aye”.

Member(s) shown present above voted “No”.

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2. A true, full and correct copy of the aforesaid resolution adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that said resolution has been duly recorded in said Board’s minutes of said meeting; that the above and foregoing paragraph is a true, full and correct excerpt from said Board’s minutes of said meeting pertaining to the adoption of said resolution; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of said Board as indicated therein; that each of the officers and members of said Board was duly and sufficiently notified officially and personally, in advance, of the date, hour, place and purpose of the aforesaid meeting, and that said resolution would be introduced and considered for adoption at said meeting, and each of said officers and members consented, in advance, to the holding of said meeting for such purpose; that said meeting was open to the public as required by law; and that public notice of the date, hour, place and subject of said meeting was given as required by the Chapter 551, Texas Government Code.

SIGNED AND SEALED this _______ day of _______________, 2016.

Secretary, Board of TrusteesLone Star College System

[SEAL]

Personnel Report and Consideration No. 1 (ACTION ITEM 33) Board Meeting 8-4-16

Request: Consideration of Ratification of Appointments.


That the contractual appointments listed on the following pages be ratified for the positions indicated.

Rationale: These contractual appointments include ratification of Administrators and Faculty.

Fiscal Impact: Positions and salaries have been budgeted for 2015-2016.


Exhibit "kk"

a. LSC-CyFair LaGaryion Reed, Assistant Professor, Nursing LVN Effective: 12 month contracted employee at a salary of $67,640 beginning June 6,

2016 Education: M.S., Nursing, Loyola University New Orleans; B.S., Nursing, B.S.,

Chemistry, Grambling State University Experience: Adjunct Faculty, Vocational Nursing Program, Lone Star College-CyFair;

PRN Medical/Surgical Registered Nurse, Elite Medical Staffing; Staff Registered Nurse, PRN Registered Nurse, Houston Methodist West, Imaging Center; Staff Registered Nurse, Memorial Hermann Northwest, Progressive Care Unit; Staff Registered Nurse, Interventional/Neuro-Interventional Radiology, Surgery/Trauma Unit, LSU Health-Shreveport

b. LSC-System Office

Brian Cokes, Project Director, Facilities Effective: 12 month contracted employee at a salary of $75,000 beginning June 1,

2016 Education: M.S., Community Development, B.S., Architecture, Prairie View A&M

University Experience: Adjunct Instructor, Lone Star College-North Harris; Architectural Project

Manager, Construction Consultant; Sr. Project Manager, CBRE; Sr. Manager, AT&T; Construction Advisor/Department of Housing, Con-Real, Inc.

Samad Hinton, Executive Director, College Preparation Programs Effective: 12 month contracted employee at a salary of $84,502 beginning June 1,

2016 Education: B.S., Accounting, Florida A&M University Experience: Associate Director of Course and Program Design, Director of Online

Business Education, Portland State University; Operations Manager, Partner Integration Services, Team Lead, Enrollment Services, Academic Partnerships, LLC Enrollment Advisor, Walden University

Cyndie McNamee, Executive Director, HR College Services Effective: 12 month contracted employee at a salary of $105,143 beginning June 15,

2016 Education: M.B.A., Our Lady of the Lake University; B.B.A., University of Houston-

Clear Lake

Experience: Interim Executive Director, HR College Services, Lone Star College-System Office; Sr. Human Resources Manager, Lone Star College-CyFair; Human Resource Manager, Oiltools Inc.; Human Resource Manager, ADESA-Charlotte, Inc.

Caroline Williamson, Executive Director, Workforce Project Development Effective: 12 month contracted employee at a salary of $86,192 beginning June 1,

2016 Education: Bachelor of Commerce, Public Relations, Curtin University, Australia;

Advanced Diploma in Business Administration, Central TAFE, Australia Experience: Implementation Coordinator/Director-SDF Grant, Lone Star Corporate

College; Marketing Manager-Catalogs, Hagemeyer North America; Marketing Manager, Encon Safety Products; Communications Coordinator, Central TAFE, Australia

c. LSC-Tomball

Nicole Brown, Assistant Professor, Veterinary Technology Effective: 12 month contracted employee at a salary of $82,674 beginning May 16,

2016 Education: Doctor of Veterinary Medicine, Oklahoma State University; B.S.,

Biomedical Science & Animal Science, Texas A&M University Experience: Relief Veterinarian, RSVP: Relief Services for Veterinary Practitioners;

Associate Veterinarian, Companion Animal and Exotic Animal Practice, Best Friends Veterinary Hospital; Associate Veterinarian, Mixed Practice, Conroe Veterinary Clinic; Overnight and Holiday Emergency Veterinarian, Animal Emergency Clinic of Conroe; Veterinary Student; Banfield The Pet Hospital

Emile Dally, Dean, Student Success Effective: 12 month contracted employee at a salary of $86,192 beginning May 1,

2016 Education: M.S., Biology, Texas A&M University; B.S., Biology, Psychology, Dallas

Baptist University; A.A.S., Cedar Valley College Experience: Interim Dean of Student Development, Director, Advising & Counseling,

Assistant Director, Advising, Senior Academic Advisor, Academic Advisor II, Academic Advisor, Lone Star College-Tomball; Department Assistant, Assistant Athletic Coach, Adjunct Faculty, Biology Lab Instructor, Cedar Valley College


Request: Consideration of Resignations


That the resignations listed below be accepted and acknowledged.

LSC-System Office Cory Bradfield, Sr. IT Manager, Infrastructure Effective June 24, 2016

Austin Lane, Executive Vice Chancellor Effective June 7, 2016

Salvatore Mira, Director, Small Business Development Center (SBDC) Effective January 15, 2017

Heidi Smith, Executive Director, First Year Experience (FYE) Effective July 1, 2016

Wendell Williams, Associate Vice Chancellor, Student Success Effective June 11, 2016

LSC-Kingwood Shelley Caraway, Associate Professor-Speech Effective June 1, 2016


Exhibit "ll"


Request: Proposed Addenda to the Chancellor’s Contract

Recommendation: Acceptance of any proposed addenda to the Chancellor’s contract.

Exhibit "mm"

Special Report and Consideration No. 1 (ACTION ITEM 36) Board Meeting 8-4-16

Request: Consideration of Approval for the Board of Trustees to Submit Nominations to Association of Community College Trustees (ACCT) for ACCT Board Committees


That the Board of Trustees approve submitting nominations for ACCT Board Committees.

Rationale: The Association of Community College Trustees (ACCT) has five committees: Diversity; Finance and Audit; Governance and Bylaws; Member Communications and Education; and Public Policy and Advocacy.

Associate members may be appointed to a committee under the following conditions: they shall be selected from voting members; they may serve three consecutive one-year terms per committee; no more than one associate member from a college shall serve on any one board committee; all related expenses are to be the responsibility of their college; they have full voting rights; and they shall have a letter of nomination from their board supporting the appointment to an ACCT committee.

As one of the largest community colleges in the country, LSC trustees would serve as effective committee members to advance the ACCT mission.

Fiscal Impact: Approximately $2,000

Staff Resource: Helen Clougherty 832-813-6514

Exhibit "nn"

Building and Grounds Report Board Meeting 8-4-16

Report: Construction Projects Update

The monthly construction projects update is presented for Board review.

Exhibit "oo"

CONSTRUCTION PROJECTS UPDATE August 4, 2016 2014 General Obligation Bond Projects Summary LSC-CyFair

• Instruction and Student Life Building: Building slab and second floor have been placed and structural steel erection is complete. Masonry walls on Central Plant are complete. Construction continues on schedule and is expected to be complete in March 2017.

• Cypress Center Workforce Expansion: Construction is scheduled to begin in November 2016 simultaneous with the Westway Park Technology Center and be complete in May 2017.

• Westway Park Technology Center: Construction documents are in progress. It is anticipated that the GMP will be presented for consideration of approval at the November 2016 Board of Trustees meeting. Construction is expected to be complete in July 2017.

LSC-Kingwood • Student Services Center Expansion: Earthwork and building pad construction are in progress. • Process Technology Center: The GMP was approved at the June 2016 Board of Trustees

meeting and the contract is being finalized. LSC-Montgomery

• Conroe Satellite Center: Building foundation is complete and exterior walls are in progress. Construction is expected to be complete in January 2017.

• Live Entertainment Technology Building: The GMP was approved at the June 2016 Board of Trustees meeting and the Contractor has mobilized. Construction is expected to be complete in March 2017.

• Magnolia Satellite Center: Site alternatives continue to be evaluated.

LSC-North Harris

• Applied Technology Workforce Building: The GMP was approved at the June 2016 Board of Trustees meeting. Construction is expected to be complete in July 2017.

• East Aldine Satellite Center: The Aldine ISD Early College Facility Design Development documents are in progress and it is anticipated that the GMP will be presented for consideration of approval at the November 2016 Board of Trustees meeting. Construction of both projects is expected to be complete in November 2017.

• Transportation and Logistics Institute: Site purchase alternatives continue to be evaluated. • Relocate Electrical Service Underground: Design Development is in progress and it is

anticipated that the GMP will be presented for approval at the November 2016 Board of Trustees meeting. Construction is expected to be complete in March 2017.

LSC-Tomball

• Health Science Building - 3rd Floor Buildout: Construction is progressing on schedule and is expected to be complete in August 2016.

LSC-University Park • Science and Innovation Center: Building slab is nearing completion. Construction is expected

to be complete in May 2017. • Classroom Renovations in Building 12, Level 7: Construction is progressing on schedule

and is expected to be complete in August 2016.

Documents

MINUTES OF THE REGULAR MEETING OF THE BOARD OF … · Board in closed sessionto conduct the termination hearing at the request of Ms. Cynthia Gilliam in accordance with Section 551.001