MINUTES OF THE WORKSHOP AND REGULAR … 8 01 MINUTES...IV. CLOSED SESSION: At 5:05 p.m. Dr. Smith convened the Board in closed session, in accordance with Section 551.001 et seq. of

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MINUTES OF THE WORKSHOP AND REGULAR MEETING OF THE BOARD OF TRUSTEES

LONE STAR COLLEGE SYSTEM CENTRAL SERVICES AND TRAINING CENTER

TRAINING AND DEVELOPMENT CENTER BOARD ROOM 5000 RESEARCH FOREST DRIVE

THE WOODLANDS, TEXAS 77381-4356 August 1, 2019

5:00 p.m.

PRESENT: Dr. Alton Smith, Chair Ms. Myriam Saldívar, Vice Chair Mr. Art Murillo, Secretary

Ms. Linda Good, Assistant Secretary Mr. David Vogt Ms. Ernestine Pierce Mr. Mike Sullivan Mr. Michael Stoma ABSENT: Mr. Ken Lloyd I. CALL TO ORDER: Dr. Smith called the workshop and regular meeting of the Board of

Trustees to order at 5:04 p.m. after determining that a quorum was present.

II. PLEDGE OF ALLEGIANCE: Trustee Pierce led the Board and guests in reciting the Pledge of Allegiance.

III. CERTIFICATION OF THE POSTING OF THE NOTICE OF THE MEETING:

Chancellor Head confirmed that the Notice for the meeting had been properly posted. No action was required. A copy is attached as Exhibit “A”.

IV. CLOSED SESSION: At 5:05 p.m. Dr. Smith 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 or Proposed Litigation • On any item on the Agenda • On a matter in which the duty of the attorney to LSCS under the

Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the OMA

Section 551.072 – Deliberation Regarding Real Property

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• LSC-CyFair, LSC-Houston North, LSC-Kingwood, LSC–Montgomery, LSC-North Harris, LSC-Tomball, LSC-University Park, LSC-System Office, Future Land Purchases

Section 551.074 – Personnel Matters • Chancellor’s Contract

Section 551.076 – Deliberation Regarding Security Devices

Mr. Vogt entered the meeting at 5:07 p.m. Ms. Saldívar entered the meeting at 5:21 p.m.

V. RECONVENE REGULAR MEETING: Dr. Smith reconvened the open meeting at 6:38 p.m.

VI. INTRODUCTIONS, SPECIAL GUESTS AND RECOGNITIONS: Dr. Head introduced Andrew Christman with Community Impact and Jane Stueckemann with the Houston Chronicle. He also recognized Jim Cain, former superintendent of Klein ISD.

VII. WORKSHOP: None.

VIII. APPROVAL OF THE MINUTES OF THE JUNE 6, 2019 BUDGET WORKSHOP AND MINUTES OF THE JUNE 6, 2019 WORKSHOP AND REGULAR MEETING: upon a motion by Ms. Saldívar and a second by Mr. Murillo, the board approved the minutes of the June 6, 2019 Budget Workshop. Mr. Murillo abstained. Upon a motion by Ms. Pierce and a second by Ms. Saldívar, the board approved the minutes of the June 6, 2019 Workshop and Regular Meeting. Mr. Murillo abstained.

IX. SPECIAL REPORTS AND ANNOUNCEMENTS:

1. Chancellor: Dr. Head reported that enrollments were up 3.4%. He asked Shah Ardalan president LSC-University Park to talk about the innovation award given to LSC-University Park by the Houston Business Journal. Mario Castillo introduced new assistant general counsel Catherine Matta. Dr. Head announced that two bachelor’s degree programs were approved by THECB – B.S. in Nursing and B.A.T. in Energy Manufacturing and Skilled Trades. We are waiting on approval for the B.A.T. in Cybersecurity. These programs will begin in Fall 2020.

2. Board Members: Mr. Michael Sullivan thanked Dr. Persson for the invitation to the Lake Houston Area Chamber of Commerce Legislative update – higher education chair Brandon Creighton spoke as well as public education chair Dan Huberty. Trustee Sullivan also thanked Dr. Keshvala for the tour of LSC-CyFair. Chair Smith was invited to the closure of the reading summer program at Nitsch Elementary School near Acres Home. A graduation ceremony was held for those

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students, hosted by LSC-Houston North. Trustee Smith also attended the Springfield College signing ceremony at LSC-UP. Dr. Head commended the great turnout for LSC Night at the Astros game on July 23rd and the great partnership the college has with the Houston Astros.

X. CITIZEN PARTICIPATION: Mr. Max Evans representing the Gideon’s International Organization made a request to distribute bibles at LSC campuses. Mr. John Burghduff representing AFT, addressed the board about the proposed budget for FY 2019-20.

XI. CONSIDERATION OF THE CONSENT AGENDA: Chair Smith proceeded with the

Consent Agenda. Items #1, and 25 were removed from the agenda to be voted on separately. Ms. Saldívar made a motion to approve Action Items 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 26 and 27. Mr. Vogt seconded the motion and the Board unanimously passed the Consent Agenda. A copy is attached as Exhibit “B”.

XII. FINANCIAL REPORTS AND CONSIDERATIONS:

1. Consideration of Adoption of the Lone Star College (the “College”) Recommended FY 2020 Budget (ACTION ITEM 1): upon a motion by Mr. Sullivan and a second by Ms. Saldívar the Board of Trustees adopted the College’s FY 2020 recommended budget and authorize the Chancellor to approve expenditure budget transfers among the funds, as necessary and allowed by law, provided that such transfers do not result in a change in the total expenditures budget of $392,141,814. A copy is attached as Exhibit “C”.

2. Consideration of Approval to Renew the Annual Insurance Policies and the Agreements for the Administration of Student Liability and Medical Insurance on Behalf of Lone Star College (the “College”) for FY 2020 (ACTION ITEM 2): the Board of Trustees approved the renewal of the annual insurance policies for FY 2020 in a sum not exceeding $4,600,000 for a one-year period beginning September 1, 2019 and ending August 31, 2020, as summarized in Appendix A. This item was passed in the Consent Agenda. A copy is attached as Exhibit “D”.

3. Consideration of Approval for Annual Purchases of Bond-Funded Construction and Construction Related Services on Behalf of Lone Star College (the “College”) (ACTION ITEM 3): the Board of Trustees authorized the Chancellor or designee to approve the purchase of bond-funded construction and construction-related services on behalf of the College in a sum not exceeding $2,000,000 during FY 2020. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each contract. Contract sums exceeding $500,000 will be individually presented to the Board for consideration. This item was passed in the Consent Agenda. A copy is attached as Exhibit “E”.

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4. Consideration of Approval for Annual Purchases of Repair and Replacement (“R&R”) Construction and Construction Related Services on Behalf of Lone Star College (the “College”) (ACTION ITEM 4): the Board of Trustees approved the purchase of construction and construction-related services in a total sum not exceeding $6,000,000 during FY 2020. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each contract. Contract sums exceeding $500,000 will be individually presented to the Board for consideration of approval. This item was passed in the Consent Agenda. A copy is attached as Exhibit “F”.

5. Consideration of Approval of Annual Purchases of Bond-Funded Technology

Hardware, Software, and Services on Behalf of Lone Star College (the “College”) (ACTION ITEM 5): the Board of Trustees authorized the Chancellor or designee to execute the contracts detailed in Appendix A for the sums not exceeding the amounts listed. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract related to the purchase of bond-funded technology hardware, software, and services. The Chancellor also represents to the Board that no combination of contracts, purchases, or expenditures under this board agenda item will exceed $10,100,000 during FY 2020. This item was passed in the Consent Agenda. A copy is attached as Exhibit “G”.

6. Consideration of Approval of Annual Purchases of Technology Hardware, Software, and Services (ACTION ITEM 6): the Board of Trustees authorized the Chancellor or designee to execute the contracts detailed in Appendix A for the sums not exceeding the amounts listed. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract related to the purchase of technology hardware, software, and services. The Chancellor also represents to the Board that no combination of contracts, purchases, or expenditures under this board agenda item will exceed $12,000,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “H”.

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

Resource Sharing Membership Fees During FY 2020 (ACTION ITEM 7): the Board of Trustees approved the purchase of library materials, supplies, services, and resource sharing membership fees for FY 2020 in a sum not exceeding $1,265,000. The Chancellor also recommends authorizing the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract. This item was passed in the Consent Agenda. A copy is attached as Exhibit “I”.

8. Consideration of Approval to Authorize the Chancellor or Designee to Purchase Science Supplies, Equipment, and Instructional Chemicals (ACTION ITEM 8): the Board of Trustees approved the purchase of science supplies, equipment, and

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instructional chemicals from the attached list of vendors for a sum not exceeding $6,000,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “J”.

9. Consideration of Approval to Authorize the Chancellor or Designee to Submit Grant

Applications and Enter in to Grant Contracts and Amendments on Behalf of Lone Star College (the “College”) During FY 2020 (ACTION ITEM 9): the Board of Trustees authorized the chancellor or designee to submit grant applications and enter in to grant contracts and amendments on behalf of the College during FY 2020. The Chancellor also recommends that the Board of Trustees authorize the Chancellor or a designee to execute and submit individual grant applications and execute grant contracts and amendments exceeding $100,000 or more, but less than $4,500,000, without obtaining the Board’s individual pre-approval for each individual grant application or grant contract. This item was passed in the Consent Agenda. A copy is attached as Exhibit “K”.

10. Consideration of Approval of Bond-Funded Security Purchases on Behalf of Lone Star

College (the “College”) (ACTION ITEM 10): the Board of Trustees approved the purchase of bond-funded security infrastructure, software, and equipment on behalf of the College in a total sum not exceeding $10,455,908 during FY 2020. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract. This item was passed in the Consent Agenda. A copy is attached as Exhibit “L”.

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

Execute Contracts on Behalf of Lone Star College (the “College”) for Police-Specific Equipment to Support the Lone Star College Police Department’s Safety and Security Mission (ACTION ITEM 11): the Board of Trustees authorized the Chancellor or designee to negotiate and execute contracts on behalf of the College for the purchase of police-specific equipment in sum not exceeding $500,000 in FY 2020. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract. A copy is attached as Exhibit “M”.

12. Consideration of Approval to Purchase Multimedia Advertisement and Event

Sponsorship Services on Behalf of Lone Star College (the “College”) (ACTION ITEM 12): the Board of Trustees approved the purchase of multimedia advertisement and event sponsorship services on behalf of the College for an estimated sum not exceeding $1,500,000 with a total sum not exceeding $7,500,000 over a five-year period. This item was passed in the Consent Agenda. A copy is attached as Exhibit “N”.

13. Consideration of Approval to Authorize the Chancellor or Designee to Increase the

Total Not-to-Exceed Amount of the Previously Awarded Contracts on Behalf of Lone

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Star College (the “College”) for Elevator Maintenance, Safety Inspections, and Repair Services (ACTION ITEM 13): the Board of Trustees authorized the Chancellor or designee to increase the total not-to-exceed amount of previously awarded contracts on behalf of the College to purchase elevator maintenance, safety inspections, and repair services in a sum not exceeding $800,000 for a revised total sum not exceeding $1,600,000 over a five-year period to: KONE, Inc. 4607 World Houston Parkway, Suite 150, Houston, TX 77032 and Southwest Elevator DBA Oracle Elevator, 1811 North Freeway, Suite 222, Houston, TX 77060. This item was passed in the Consent Agenda. A copy is attached as Exhibit “O”.


Execute a Contract on Behalf of Lone Star College (the “College”) with Williams Scotsman, Inc. (“Scotsman”) for the Lease of a Modular Building for the Lone Star College Oil & Gas Training Center (“LSC Oil & Gas”) in Tomball, Texas (ACTION ITEM 14): the Board of Trustees authorized the Chancellor or designee to negotiate and execute a contract with Scotsman for the lease of a modular building for LSC Oil & Gas in Tomball, Texas for a one-year period. This item was passed in the Consent Agenda. A copy is attached as Exhibit “P”.


Execute Contracts and Necessary Easements and Agreements on Behalf of Lone Star College (the “College”) for the Sale of Lot 15, Block 80 located in Tomball, Harris County, Texas (ACTION ITEM 15: the Board of Trustees authorized the Chancellor or designee to negotiate and execute contracts and necessary easements and agreements on behalf of the College for the sale of lot 15, block 80 located in Tomball, Harris County, Texas. This item was passed in the Consent Agenda. A copy is attached as Exhibit “Q”.


Execute a Contract on Behalf of Lone Star College (the “College”) to Purchase an Accreditation Software Solution (ACTION ITEM 16): the Board of Trustees authorized the Chancellor or designee to negotiate and execute a contract on behalf of the College to purchase an accreditation software solution with Campus Labs, Inc., 298 Main Street Suite 600, Buffalo, NY 14202, in a sum not exceeding $198,668. The term of this contract is for an initial three-year period with the option to renew for two additional one-year periods based on mutual consent. This item was passed in the Consent Agenda. A copy is attached as Exhibit “R”.


Execute a Contract on Behalf of Lone Star College (the “College”) for the Purchase of a Multi-Story Burn Building for Lone Star College-Kingwood (“LSC-Kingwood”) Fire Science Program (ACTION ITEM 17): the Board of Trustees authorized the Chancellor or designee to negotiate and execute a contract on behalf of the College for the purchase of a multi-story burn building with Draeger. Inc., 3135 Quarry Road, Telford, PA 18969, in a sum not exceeding $375,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “S”.

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18. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract on Behalf of Lone Star College (the “College”) for the Purchase and Installation of Movable Furnishings for Lone Star College System Office-University Park (“SO-UP”) Building 11, Floor 3 (ACTION ITEM 18): the Board of Trustees authorized the Chancellor or designee to negotiate and execute a contract on behalf of the College with J. Tyler Services, Inc., 5920 Milwee, Houston, TX 77092 for the purchase and installation of movable furnishings in a sum not exceeding $360,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “T”.


Execute a Contract on Behalf of Lone Star College (the “College”) for the Purchase and Installation of Movable Furnishings for Lone Star College System Office-University Park (“SO-UP”) Building 11, Floor 7 (ACTION ITEM 19): the Board of Trustees authorized the Chancellor or designee to negotiate and execute a contract on behalf of the College with J. Tyler Services, Inc., 5920 Milwee, Houston, TX 77092 for the purchase and installation of movable furnishings in a sum not exceeding $250,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “U”.

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

Contract on Behalf of Lone Star College (the “College”) for Construction Services with G.A.M. Construction Inc. for Lone Star College-System Office University Park (“SO-UP”) (ACTION ITEM 20): the Board of Trustees authorized the Chancellor or designee to amend the contract on behalf of the College for construction services with G.A.M. Construction Inc. (“GAM”), 3091 College Park Drive, Suite 240-134, The Woodlands, Texas for the SO-UP renovation of Building 11, Floor 7 in a sum not exceeding $1,160,807. This item was passed in the Consent Agenda. A copy is attached as Exhibit “V”.

21. Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract on Behalf of Lone Star College (the “College”) for Additional Design Services with Texas-IBI Group for Lone Star College-North Harris (“LSC-North Harris”) for the East Aldine Center and for the Aldine Independent School District (“AISD”) Early College High School Facility (ACTION ITEM 21): the Board of Trustees authorized the Chancellor or designee to amend the contract on behalf of the College for additional architectural design services with Texas-IBI Group architects, 455 East Medical Center Blvd., Suite 500, Webster, Texas 77598, in a sum not exceeding $30,000 for a revised contract sum not exceeding $1,957,042. This item was passed in the Consent Agenda. A copy is attached as Exhibit “W”.

22. Consideration of Approval to Amend the Annual Purchases of Technology Hardware,

Software, and Services on Behalf of Lone Star College (the “College”) for FY 2019 Exhibit A List (ACTION ITEM 22): the Board of Trustees approved an amendment to the annual purchases of technology hardware, software, and services on behalf of the College for FY 2019 Exhibit A list for a sum not exceeding $200,000 for the Oracle

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PeopleSoft (iStar) support and maintenance contract for a total contract sum not exceeding $2,200,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “X”.

23. Consideration of Approval to Authorize the Chancellor or Designee to Purchase

Additional Cisco Network Hardware, Software, and Maintenance on Behalf of Lone Star College (the “College”) (ACTION ITEM 23): the Board of Trustees authorized the Chancellor or designee to purchase additional Cisco network hardware, software, and maintenance on behalf of the College from Netsync Network Solutions, 2500 West Loop South, Suite 410, Houston, Texas 77027, for a sum not exceeding $7,000,000 for a total revised sum not exceeding $14,000,000 over the two-year period. This item was passed in the Consent Agenda. A copy is attached as Exhibit “Y”.


Execute Contracts on Behalf of Lone Star College (the “College”) to Purchase Real Estate and to Negotiate and Execute Agreements and Easements Related to the Property for the Lone Star College-Montgomery (“LSC-Montgomery”) Satellite Center (ACTION ITEM 24): the Board of Trustees authorized the Chancellor or designee to negotiate and execute one or more contracts on behalf of the College to purchase real estate in Magnolia, Texas for the LSC-Montgomery Satellite Center. The property will be purchased at or below appraised value for a sum not exceeding $5,000,000. In addition, that the Board of Trustees authorize the Chancellor or designee to negotiate and execute any required Agreements and Easements with the property owner(s), improvement district(s), municipal utility district(s), and utility providers necessary for access and utility service to the LSC-Montgomery Satellite Center. This item was passed in the Consent Agenda. A copy is attached as Exhibit “Z”.

SPECIAL REPORTS AND CONSIDERATIONS: 1. Consideration of Approval to Adopt a Resolution Casting a Ballot for the Nominee

Named in the Resolution to Serve as a Member of the Board of Directors of the Harris County Appraisal District for the Remainder of the Two-Year Term of Office Ending December 31, 2019 (ACTION ITEM 25): upon a motion by Ms. Saldívar and a second by Mr. Sullivan the Board of Trustees adopted a resolution casting a ballot for Robert Sitton to serve as a member of the board of directors of the Harris County Appraisal District for the remainder of the two-year term of office for Pete Pape ending December 31, 2019. A copy is attached as Exhibit “aa”.

PERSONNEL REPORTS AND CONSIDERATIONS: 1. Consideration and Authorization for the Chancellor or Designee to Execute Proposed

Employment Contracts for the Attached Individuals (ACTION ITEM 26): the Board of Trustees authorized the Chancellor or a designee to execute proposed employment contracts for the attached individuals. Each individual’s name, job title, not-to-exceed

Certification of Posting of Notice to the August 1, 2019 Workshop and 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 29th day of July, 2019 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 29th day of July, 2019.

LONE STAR COLLEGE SYSTEM

_____________________ Stephen C. Head

Chancellor

Exhibit "A"

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Consideration of Consent Agenda Board Meeting 8-1-19

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 – Adopt Recommended FY 2019-20 Budget ______ ______ ______ # 2 – Approve Renewal Annual Insurance Policies FY2020 ______ ______ ______ # 3 – Approve Ann Purch/Bond-Funded Const Related Svc ______ ______ ______ # 4 – Approve Annual Purch/R&R Construction/Related Svcs ______ ______ ______ # 5 – Approve Annual Purch/Bond-Funded Tech/Hardware ______ ______ ______ # 6 – Approve Change Ann/Purch/Tech/Hardware/Software ______ ______ ______ # 7 – Approve Purch/Library Materials/Supplies/Svs/FY2020 ______ ______ ______ # 8 – Auth Chan/Exec/Purch/Science Supplies/Equip/Chemical ______ ______ ______ # 9 – Auth Chan/Submit Grant Apps/Contracts FY2020 ______ ______ ______ #10 – Approve Bond-Funded Security Purchases ______ ______ ______ #11 – Auth/Chan/Exec/Cont/Police-Specific Equipment ______ ______ ______ #12 – Approve Purch/Multimedia Advertisement/Event Spon ______ ______ ______ #13 – Auth/Chan/Exec/Increase Spend/Elevator/Main/Safety ______ ______ ______ #14 – Auth/Chan/Exec/Cont/Williams Scotsman/Lease Mod ______ ______ ______ #15 – Auth/Chan/Exec/Cont/Easement/Sale Lot 15 Blk 80 ______ ______ ______

X

Exhibit "B"

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Tally of Action Items: Chancellor Board

Consent Recommended Separate Agenda Separate Action Action

#16 – Auth Chan/Exec/Purch/Accreditation Software ______ ______ ______ #17 – Auth Chan/Purch/Multi-Story Burn Bldg LSC-Kingwood______ ______ ______ #18 – Auth Chan/Exec/Purch/Movable Furn LSC-SO-UP Flr 3 ______ ______ ______ #19 – Auth Chan/Exec/Purch/Movable Furn LSC-SO-UP Flr 7 ______ ______ ______ #20 – Auth Chan Amend Cont/Const/Svcs/G.A.M. Const ______ ______ ______ #21 – Auth Chan/Amend/Contract/Add’l/Des/Svcs/Texas IBI ______ ______ ______ #22 – Approve Amend Ann/Purch/Tech/Hardware/Software ______ ______ ______ #23 – Auth Chan/Purch/Add’l/Cisco Network Hardware, Main ______ ______ ______ #24 - Auth Chan/Exec/Purch/Real/Estate/Exec/Easements ______ ______ ______ #25 - Adopt Resolution Casting Ballot for HCAD BOD ______ ______ ______ #26 – Auth Chan Exec/Employment Contracts ______ ______ ______ #27 – Consideration/Approval Ratify Chancellor’s Contract ______ ______ ______

X

Financial Report and Consideration No. 1 (ACTION ITEM 1) Board Meeting 8-1-19

Request: Consideration of Adoption of the Lone Star College (the “College”) Recommended FY 2020 Budget

Chancellor’s Recommendation:

That the Board of Trustees adopt the College’s FY 2020 recommended budget and authorize the Chancellor to approve expenditure budget transfers among the funds, as necessary and allowed by law, provided that such transfers do not result in a change in the total expenditures budget of $392,141,814.

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 College’s educational plan for FY 2020.

The recommended budget is as follows:

REVENUES:

SOURCE AMOUNT STATE ALLOCATIONS $78,683,229 STUDENT REVENUES 130,284,570 LOCAL TAXES 163,837,188 MISCELLANEOUS ACTIVITIES 19,315,366 TOTAL REVENUES $392,120,353

EXPENDITURES/USES:

OPERATING $352,381,410 OPERATING DEBT PAYMENT 8,200,000 STUDENT ACTIVITIES 3,240,800 TECHNOLOGY 14,688,655 CORPORATE COLLEGE 2,500,000 AUXILIARY 11,130,949 TOTAL EXPENDITURES $392,141,814 USE OF RESERVES ($21,461)

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 7.6%. Providing for a 1% margin of error, tax revenues reflect 6.6% growth. The FY 2020 budgeted tax revenues are estimated using the same tax rate as the

Exhibit "C"

FY 2019 budget. Once the certified rolls have been received, a recommendation will be taken to the Board of Trustees regarding the tax rate.

FY 2020 is the first year of the biennium. Student revenues reflect a 2.5% increase in credit hour growth in enrollments, a $5 per credit hour increase in tuition, a $10 per credit hour out-of-district fee increase, a $30 per credit hour out-of-state and international fee increase, a $1 per credit hour distance learning fee increase, $1 per semester registration and infrastructure fee increases, and differential fee increases that are expected to average $1 based on discipline, for Fall 2019.

The FY 2020 budget contains several initiatives in support of the College’s following strategic priorities: Academic and Workforce Program Quality, Student Success, Culture, and Financial Responsibility and Accountability.

Compensation recommendations included in the budget are as follows:

• A 3% increase for full time-faculty and non-faculty, a 3% increasefor part-time, non-faculty employees, excluding student workers,and college work-study workers

• Compensation changes related to compression• $2 per contact hour (4.8%) Adjunct pay increase

Fiscal Impact: The budget as presented is based on conservative revenue estimates and includes the use of $21,461 in reserves; a $565,974 addition to Operating reserves, and a $587,435 use of Student Activity reserves. The use of Student Activity reserves is part of a three-year plan to bring the fund to a more reasonable reserve level. The FY 2020 budget includes an estimated ending cash reserve balance of 16.0% of expenditures.

Staff Resource: Steve Head 832-813-6515Jennifer Mott 832-813-6512


Request: Consideration of Approval to Renew the Annual Insurance Policies and the Agreements for the Administration of Student Liability and Medical Insurance on Behalf of Lone Star College (the “College”) for FY 2020


That the Board of Trustees approve the renewal of the annual insurance policies for FY 2020 in a sum not exceeding $4,600,000 for a one-year period beginning September 1, 2019 and ending August 31, 2020, as summarized in Appendix A, and the agreements for the administration of student liability and medical insurance outlined below.

Rationale: The College’s current insurance policies provide comprehensive liability, property, and casualty coverage. The College 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 of September 1, 2019 through August 31, 2020 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 College’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 Health Plans (“AHP”). 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 "D"

(RENEWAL) Student Health Insurance Plan Medical Insurance (International Students on F-1 Visas and Student Interns) The recommended Student Health Insurance Plan is provided by the current carrier, Blue Cross and Blue Shield of Texas and administered by AHP. 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 meets standards set by the Affordable Care Act. Students attending the College on F-1 Visas are required to have medical insurance. In addition, the majority of the College’s health occupations affiliation partners require student interns to carry medical insurance in order to participate in the program. The annual health insurance premium paid by the student is $3,681, an increase of $1,106 (42.95%) over the current premium.

Fiscal Impact: Funds for insurance policy premiums are included in the proposed FY 2020

budget. Staff Resource: Jennifer Mott 832-813-6512

APPENDIX A

Insurance Coverage Recommendations for FY 2020

Description Insurance Company Annual

Premium FY2019

Annual Premium FY2020

Variance %

Liability Policies

Commercial General Liability-Primary United Educators Risk Retention Group $142,035 $147,409 $5,374 3.78%

Educators Legal Liability United Educators Risk Retention Group

$288,105 $301,895 $13,790 4.79%

Excess Employers Liability United Educators Risk Retention Group

$119,941 $127,486 $7,545 6.29%

Medical Professional Liability-Dental Evanston Insurance Co. $15,456 $15,456 $0 0.00%

Automobile Liability-Fleet and Transportation Institute

Texas Political Subdivisions (TPS)

$154,630 $178,812 $24,182 15.64%

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

$629,016 $653,862 $24,846 3.95%

Non-Owned Aircraft Liability Starr Indemnity & Liability Company $0 $19,980 $19,980 0.00%

Property & Equipment Fire & Extended Coverage & Equipment Breakdown AmRisc, LLC $2,459,703 $3,058,640 $598,937 24.35%

Inland Marine-Mobile Equipment Hanover Insurance Company $17,573 $19,433 $1,860 10.58%

Fine Arts & Small Museums Ironshore Indemnity $1,125 $1,125 $0 0.00%

Commercial Crime Employee Dishonesty Great American Insurance Co. $11,591 $11,591 $0 0.00% Cyber Liability

American International Group

$34,300

$37,840

$3,540

10.43%

Foreign Travel Policies

International Travel Chubb $13,423 $13,423 $0 0.00%

Kidnap and Ransom Insurance Policy Hiscox Insurance Company $5,357 $5,754 $397 7.41%

Foreign Liability ACE USA American Insurance Co.

$2.500 $2,500 $0 0.00%

TOTAL $3,894,755 $4,595,206 $700,451 17.98%

APPENDIX B

System-Wide Insurance Coverage Details for FY 2020

(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 $147,400, an increase of $5,374 (3.78%) 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 $301,900, an increase of $13,790 (4.79%) over the current premium. The increase is due to the legal exposure for board members (industry wide), as well as an increase in the number of employees covered under the policy.

(RENEWAL) General Liability Excess 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 $127,500, an increase of $7,545 (6.29%) 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) 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 $15,500 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 LSC Transportation Institute. 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 $178,800, an increase of $24,182 (15.64%) over the current premium. The increase is due to a rate increase 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 $653,900, an increase of $24,846 (3.95%) 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 recommended carrier AmRisc, LLC, provides coverage for 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 per building, with a minimum of $250,000, for wind damage associated with a hurricane and $100,000 for any other wind or hail. This policy is subject to a $300,000,000 Real Property Loss Limit for any one occurrence. The sub-limit for flood is increased to $20,000,000, extra expense coverage remains $10,000,000 and Business Interruption is added to include Lose of Rents, Income/Tuition and 90 days of payroll with a total $151,902,005 sublimit. The annual premium is $3,058,640, an increase of $598,937 (24.35%) over the current premium. The increase is due to an increase in the total insured property value. (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 $19,400, an increase of $1,860 (10.58%) 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 Ironshore Indemnity, Inc. 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 $1,125 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 $11,600 premium 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 current $2,500 premium will not be increased. (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 $5,700, an increase of $397 (7.41%) over the current premium. The increase is due to a rate increase. (RENEWAL) Travel Insurance (Out of the Country Medical Insurance, Study Abroad & Faculty International Explorations) The policy, provided by the recommended carrier, Chubb, 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 current $13,423 premium will not be increased. (RENEWAL) Cyber Liability Insurance The policy, provided by the recommended carrier, American International Group (AIG) provides coverage for losses by a cyber-event, including primary coverage for business interruption/Extra Expense, first and third party property damage, to include but not limit to, Data Asset Protection, Cyber Extortion, Breach Response, Privacy Liability and Network Security. The policy limit is $3,000,000 annual aggregate limit for all losses. The self-insured retention is $25,000. The annual premium is $37,800, an increase of $3,540 (10.43%) over the current premium. The increase is due to the cyber liability market. (NEW) Non-Owned Aircraft Liability The policy, provided by the recommended carrier, Starr Indemnity & Liability Company, provides coverage for use of non-owned aircraft which are operated by a third party. Coverage includes $5,000,000 Non-Owned Aircraft Liability Combined Single Limit Bodily Injury and Property Damage each occurrence; $5,000,000 Personal Injury Liability each occurrence and aggregate; $500,000 Medical Payments each occurrence, limited to $10,000 per seat; and $250,000 Personal Effects each occurrence, limited to $5,000 per seat. The premium is $19,980.

Financial Report and Consideration No. 3 (ACTION ITEM 3) Board Meeting 8-1-19 Request: Consideration of Approval for Annual Purchases of Bond-Funded

Construction and Construction Related Services on Behalf of Lone Star College (the “College”)


That the Board of Trustees authorize the Chancellor or designee to approve the purchase of bond-funded construction and construction-related services on behalf of the College in a sum not exceeding $2,000,000 during FY 2020. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each contract. Contract sums exceeding $500,000 will be individually presented to the Board for consideration.

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 those 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 $2,000,000.

Fiscal Impact: Funds for these purchases are available from the 2014 General Obligation

Bond Referendum, Series 2017A. Staff Resource: Jennifer Mott 832-813-6512


Request: Consideration of Approval for Annual Purchases of Repair and Replacement (“R&R”) Construction and Construction Related Services on Behalf of Lone Star College (the “College”)


That the Board of Trustees approve the purchase of construction and construction-related services in a total sum not exceeding $6,000,000 during FY 2020. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each 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 products & services for renovation, minor construction, and repair are specifically in support of the System Wide R&R Program. This pre-approval 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 $6,000,000.

Fiscal Impact: Funds for these purchases are included in the proposed FY 2020 R&R budget. Funds from general obligation bonds will not be used for any expense relying on this board agenda item. Historical spend for FY 2019 is approximately $5,500,000.

Staff Resource: Jennifer Mott 832-813-6512

Exhibit "F"


Request: Consideration of Approval of Annual Purchases of Bond-Funded Technology Hardware, Software, and Services on Behalf of Lone Star College (the “College”)


That the Board of Trustees authorize the Chancellor or designee to execute the contracts detailed in Appendix A for the sums not exceeding the amounts listed. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract related to the purchase of bond-funded technology hardware, software, and services. The Chancellor also represents to the Board that no combination of contracts, purchases, or expenditures under this board agenda item will exceed $10,100,000 during FY 2020.

Rationale: Approving the bond-funded technology hardware, software, and services purchases 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 Section 44.031, through competitive bidprocesses, or

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

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

The Chancellor or designee will also ensure that bonds are only depleted in a manner consistent with the bond order of the College authorizing the services 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.

Fiscal Impact: Funds for these purchases are available from the 2014 General Obligation Bond Referendum, Series 2017A.

Staff Resource: Link Alander 832-813-6832

Exhibit "G"

APPENDIX A

Bond-Funded Infrastructure Project Contracts Exceeding $500,000 for Which the Chancellor Seeks Pre-Approval

Item Not-to-Exceed Amount SEM, Student Success, and Guided pathways ERP Services

$1,000,000

Student Success CRM initial integration and cloud services

$1,000,000

Data center hyper converged infrastructure $1,000,000 Network & Active Directory Security Enhancements $1,500,000 Expanded Network Redundancy $1,250,000

New construction AV installation – Magnolia center $600,000 New construction AV installation – LSC-HN Fallbrook

$600,000

New construction AV installation – LSC-UP Arts Building

$750,000

New construction AV installation – LSC-MC Student Services Building

$600,000

New construction AV installation – LSC-NH Victory Center Expansion

$600,000

New construction AV installation – LSC-KW – Healthcare Instructional Building

$600,000

New construction AV installation – LSC-NH – Global Transportation

$600,000


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


That the Board of Trustees authorize the Chancellor or designee to execute the contracts detailed in Appendix A for the sums not exceeding the amounts listed. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract related to the purchase of technology hardware, software, and services. The Chancellor also represents to the Board that no combination of contracts, purchases, or expenditures under this board agenda item will exceed $12,000,000.

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 pin advance dramatically improves project schedules and enables facility, students, and staff to receive updated technology in the timeliest and cost-effective manner.

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

• Texas Education Code Section 44.031, through competitive bidprocesses, or

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

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

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 FY 2020 College Services operating budget.


Exhibit "H"

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 Microsoft Enterprise License Agreement $750,000

Classroom audio visual systems upgrades $1,500,000 Oracle PeopleSoft (iStar) support & maintenance contract

$2,500,000


Request: Consideration of Approval to Purchase Library Materials, Supplies, Services, and Resource Sharing Membership Fees During FY 2020


That the Board of Trustees approve the purchase of library materials, supplies, services, and resource sharing membership fees for FY 2020 in a sum not exceeding $1,265,000. The Chancellor also recommends authorizing the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract.

Rationale: Library materials consist of serial and journal subscriptions (including 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 program 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 all libraries.

As stipulated in House Bill 962, effective September 1, 2009, Texas Education Code Section 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, 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 proposed FY2020 operating budgets.

Staff Resource: Dwight Smith 832-813-6603Link Alander 832-813-6832Jennifer Mott 832-813-6512

Exhibit "I"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Purchase Science Supplies, Equipment, and Instructional Chemicals


That the Board of Trustees approve the purchase of science supplies, equipment, and instructional chemicals from the attached list of vendors for a sum not exceeding $6,000,000.

Rationale: Science supplies, equipment, and instructional chemicals are used to support the curriculum in biology, chemistry, physics, and geology programs at each campus. Supplies include preserved and living specimens, prepared slides, petri-dishes, rocks, and other miscellaneous supplies. Equipment includes microscopes, hot plates, models, glassware, and other miscellaneous equipment. Instructional chemicals include acetic acid, ethyl ether, hydrochloric acid, acetone, sodium bicarbonate, potassium bitartrate, sulfuric acid, zinc sulfate, and other specialized chemicals for use in the labs.

In compliance with Texas Education Code §44.031 (a), a Request for Proposals (“RFP”) #670 was publicly advertised and seven responses were received. The proposal was evaluated 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 business are utilized; past performance; long-term cost; and enhanced services/completeness and thoroughness of response. It is recommended that agreements be approved with all seven vendors to ensure the best value instructional materials are available when needed. If science supplies, equipment, and instructional chemicals are not available from the listed vendors, they may be purchased from vendors under contract with approved purchasing cooperatives.

Fiscal Impact: Funds for these purchases are included in the proposed FY 2020 budget. Funds for subsequent years will be included in future proposed budgets.

Staff Resource: Dwight Smith 832-813-6603Jennifer Mott 832-813-6832

Exhibit "J"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Submit Grant Applications and Enter in to Grant Contracts and Amendments on Behalf of Lone Star College (the “College”) During FY 2020


That the Board of Trustees authorize the chancellor or designee to submit grant applications and enter in to grant contracts and amendments on behalf of the College during FY 2020. The Chancellor also recommends that the Board of Trustees authorize the Chancellor or a designee to execute and submit individual grant applications and execute grant contracts and amendments exceeding $100,000 or more, but less than $4,500,000, without obtaining the Board’s individual pre-approval for each individual grant application or grant contract.

Rationale: Grantors issue Requests for Proposals (“RFPs”) for grant applications. RFPs require the applicant to sign the grant application which, if awarded, results in a grant contract. While the College can decide not to accept a grant award with proper notice, the application is a formal contract which contains terms and conditions of the grant.

Pre-approval to submit grant applications and execute grant contracts and amendments is necessary to respond expeditiously to grantor’s application and contract deadlines, which are normally 30 days or less. Obtaining advance Board approval of individual grant applications or contracts could result in missing deadlines and losing funding opportunities.

If the grantor requires a match, either in kind or cash, the College will only submit the grant application and execute the grant contract if the match can be covered within the budget approved by the Board of Trustees.

Grant-related purchases are made in accordance with procurement methods allowed by state law, board policy, and the grant contract including, but not limited to, competitive bids, and requests for qualifications.

Granting agencies typically reimburse awardees for grant expenditures monthly or quarterly upon submission of proper documentation.

Fiscal Impact: If the College is awarded a grant, the expenditures will be reimbursed by the grantor. If the grantor requires a match, either in kind or cash, the match will be covered with funds included in the proposed FY 2020 budget.


Exhibit "K"


Request: Consideration of Approval of Bond-Funded Security Purchases on Behalf of Lone Star College (the “College”)


That the Board of Trustees approve the purchase of bond-funded security infrastructure, software, and equipment on behalf of the College in a total sum not exceeding $10,455,908 during FY 2020. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract.

Rationale: Approving the bond-funded infrastructure, software, and equipment in advance dramatically improves project schedules and enables faculty, students, and staff to benefit from security-related projects in the timeliest and most cost-effective manner.

The purchase of security infrastructure, software, and equipment will be made in accordance with:

• Texas Education Code §44.031, through competitive bid processes,or

• Texas Government Code, Subchapter F, §271.101–102 throughBoard approved purchasing cooperatives (upon completion ofmarket analysis), or

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

The Chancellor or 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 $10,455,908.

Fiscal Impact: Funds for these purchases are available from the 2014 General Obligation Bonds, Series 2017A.

Staff Resource: Mario K. Castillo 832-813-6606

Exhibit "L"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Contracts on Behalf of Lone Star College (the “College”) for Police-Specific Equipment to Support the Lone Star College Police Department’s Safety and Security Mission


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute contracts on behalf of the College for the purchase of police-specific equipment in sum not exceeding $500,000 in FY 2020. The Chancellor also recommends that the Board authorize the Chancellor or designee to execute individual contracts exceeding $100,000, but less than $500,000, without obtaining the Board’s individual pre-approval for each such contract.

Rationale: Approving the purchase of police-specific equipment in advance dramatically improves project schedules and enables the Police Department to provide better safety and security to the community in the most cost-effective manner.

The purchase of police-specific equipment will be made in accordance with:

• Texas Education Code §44.031, through competitive bid processes,or

• Texas Government Code, Subchapter F, §271.101–102 throughBoard approved purchasing cooperatives (upon completion ofmarket analysis), or

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

The Chancellor or designee will also ensure that purchases under this board agenda item will be for police-specific equipment necessary for student, faculty, and staff safety and security.

The Chancellor also represents to the Board that no combination of contracts, purchases, or expenditures under this board agenda item will exceed $500,000.

Fiscal Impact: Funds for these purchases will be included in the proposed FY 2020 Police Department operating budget.

Staff Resource: Mario K. Castillo 832-813-6606Jennifer Mott 832-813-6512

Exhibit "M"


Request: Consideration of Approval to Purchase Multimedia Advertisement and Event Sponsorship Services on Behalf of Lone Star College (the “College”)


That the Board of Trustees approve the purchase of multimedia advertisement and event sponsorship services on behalf of the College for an estimated sum not exceeding $1,500,000 with a total sum not exceeding $7,500,000 over a five-year period.

Rationale: Advertisements and sponsorships serve as an avenue to reach potential students and market workforce programs, continuing education, and registration for Fall, Spring, and Summer sessions. The Procurement department advertises public notices for competitive bids in order to comply with Education Code 44.031(g) which requires a notice to be published in the newspaper of the county in which the College’s System Office (“LSC-SO”) is located. In addition, to comply with Board Policy Hiring Practices, all new and vacant employment positions are advertised and posted. Advertisements are paid announcements provided in the form of newspapers, postcards, brochures, internet, billboards, posters, magazine circulations, and various other medium. Sponsorships of local festivals and community activities promote community involvement on the College campuses.

Advertising costs have increased over the past few years with the addition of Lone Star College-Houston North (“LSC-Houston North”) and multiple new locations, expanded College programs, and new student outreach and completion initiatives.

Advertising vendors who currently provide services to the College as well as additional vendors will be used as needed to effectively market program offerings to students and announce employment and business opportunities.

Advertising selections and purchases are in compliance with Texas Education Code Section 51.9335 (b), where best value is justified when it is in the best interest of the College to use a particular product or services, but there is actually more than one source available. Advertisement services are uniquely positioned to provide coverage to specific individual geographic locales and readers which boosts marketing and circulation strategies and prevents the College from receiving competitive bids.

Fiscal Impact: Funds for these purchases are included in the proposed FY 2020 operating budget. Funds for subsequent years will be included in future proposed budgets.

Exhibit "N"

Staff Resource: Helen Clougherty 832-813-6514 Jennifer Mott 832-813-6512


Request: Consideration of Approval to Authorize the Chancellor or Designee to Increase the Total Not-to-Exceed Amount of the Previously Awarded Contracts on Behalf of Lone Star College (the “College”) for Elevator Maintenance, Safety Inspections, and Repair Services


That the Board of Trustees authorize the Chancellor or designee to increase the total not-to-exceed amount of previously awarded contracts on behalf of the College to purchase elevator maintenance, safety inspections, and repair services in a sum not exceeding $800,000 for a revised total sum not exceeding $1,600,000 over a five-year period.

1. KONE, Inc. 4607 World Houston Parkway, Suite 150, Houston, TX77032.

2. Southwest Elevator DBA Oracle Elevator, 11811 North Freeway,Suite 222, Houston, TX 77060.

Rationale: At the August 4, 2016 meeting, the Board of Trustees approved KONE, Inc., and Southwest Elevator DBA Oracle Elevators to provide elevator services through a formal Request for Proposal process in compliance with Texas Government Code §44.031(a).

The contracts are for elevator maintenance, safety inspections, and repair services. There has been an increase in the utilization of these services.

Fiscal Impact: Funds for these purchases are available from the approved FY 2019 budget. Funds for subsequent fiscal years will be included in future proposed budgets.


Exhibit "O"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract on Behalf of Lone Star College (the “College”) with Williams Scotsman, Inc. (“Scotsman”) for the Lease of a Modular Building for the Lone Star College Oil & Gas Training Center (“LSC Oil & Gas”) in Tomball, Texas


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract with Scotsman for the lease of a modular building for LSC Oil & Gas in Tomball, Texas for a one-year period.

Rationale: The leasing of the modular building is necessary to meet College obligations under a separate lease agreement with TechnipFMC. The lease with Technip FMC expires September 10, 2019 and the College is considering extending. The initial lease agreement with Williams Scotsman, Inc., for a modular building, was dated January 9, 2015, and it was amended on September 10, 2018. The current lease will expire on September 9, 2019. The new lease will commence on September 10, 2019 and terminate on September 9, 2020.

Fiscal Impact: The annual rental expense is $18,600 with a one-time modular removal fee of $50,000. These expenses are offset by revenues from the lease with TechnipFMC.


Exhibit "P"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Contracts and Necessary Easements and Agreements on Behalf of Lone Star College (the “College”) for the Sale of Lot 15, Block 80 located in Tomball, Harris County, Texas


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute contracts and necessary easements and agreements on behalf of the College for the sale of lot 15, block 80 located in Tomball, Harris County, Texas.

Rationale: On October 2, 1987, lot 15, block 80 was donated to the College by the Shapiro family. The lot is 25 feet wide and 190 feet long with a total square footage of 4,750 square feet. The College has no current or future use for the lot.

Fiscal Impact: The Harris County Appraisal District has valued the lot at $19,000.


Exhibit "Q"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract on Behalf of Lone Star College (the “College”) to Purchase an Accreditation Software Solution


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract on behalf of the College to purchase an accreditation software solution with Campus Labs, Inc., 298 Main Street Suite 600, Buffalo, NY 14202, in a sum not exceeding $198,668. The term of this contract is for an initial three-year period with the option to renew for two additional one-year periods based on mutual consent.

Rationale: The supplier hosted software solution will provide an organized document repository for accreditation documents; student learning outcomes and operational planning; and QEP documents. Reporting support will be available to produce accreditation report documentation.

In compliance with Texas Education Code §44.031 (a), a Request for Proposals (“RFP”) #627 was publicly advertised and two responses were received. The proposal was evaluated 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 business are utilized; past performance; long-term cost; proposed implementation timeline: enhanced services/completeness; and thoroughness of response.

Fiscal Impact: Funds for these purchases are included in the approved FY 2019 budget. Funds for subsequent years will be included in future proposed budgets.

Staff Resource: Dwight Smith 832-813-6603Link Alander 832-813-6832Jennifer Mott 832-813-6512

Exhibit "R"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract on Behalf of Lone Star College (the “College”) for the Purchase of a Multi-Story Burn Building for Lone Star College-Kingwood (“LSC-Kingwood”) Fire Science Program


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract on behalf of the College for the purchase of a multi-story burn building with Draeger. Inc., 3135 Quarry Road, Telford, PA 18969, in a sum not exceeding $375,000.

Rationale: The multi-story burn building will be a live fire training facility for cadets enrolled in the Fire Academy at LSC-Kingwood. This Class A burn building will enable the college to provide cadets with the best and most up to date training in the firefighting field of expertise. Cadets will gain insight into the complexities inherent in multi-story structural fire situations and gain experience with multiple fire scenarios in a controlled setting. These exercises give cadets the skills they must possess to survive these types of conditions in real-world situations that they will encounter in their firefighting career.

In compliance with Texas Education Code § 44.031(a), a Request for Proposal (“RFP”) #671 was publicly advertised and one response was received. The College conducted evaluations based on price; qualifications, experience, and service needs met; quality of services; references; past performance; the extent to which certified historically underutilized business (“HUB”), minority and/or veteran or women-owned businesses are utilized; long-term cost; and enhanced services and completeness as well as thoroughness of the proposals.

Fiscal Impact: $195,000 for this purchase is available from the 2014 General Obligation Bonds, Series 2017A and $180,000 is available from approved FY 2019 LSC-Kingwood operating funds.

Staff Resource: Katherine Persson 281-312-1640Jennifer Mott 832-813-6512

Exhibit "S"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract on Behalf of Lone Star College (the “College”) for the Purchase and Installation of Movable Furnishings for Lone Star College System Office-University Park (“SO-UP”) Building 11, Floor 3


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract on behalf of the College with J. Tyler Services, Inc., 5920 Milwee, Houston, TX 77092 for the purchase and installation of movable furnishings in a sum not exceeding $360,000.

Rationale: The purchase is for the acquisition and installation of furnishings for the SO-UP Building 11, Floor 3 OTS Renovation. The OTS project requires renovation and interior build-out of a 25,000 square foot area that is currently occupied by College personnel. The project is for the entire floor and allows for growth within the College.

This purchase complies with Texas Education Code §44.031 (a)(4) allowing the use of cooperative contracts. The purchase from J. Tyler Services, Inc. is being conducted through Omnia Partners – Contract # ANK472 – 4400003403. A market analysis was conducted to determine best value.

Fiscal Impact: Funds for this purchase are available from the approved FY 2019 OTS operating funds.

Staff Resource: Jennifer Mott 832-813-6512Link Alander 832-813-6832

Exhibit "T"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract on Behalf of Lone Star College (the “College”) for the Purchase and Installation of Movable Furnishings for Lone Star College System Office-University Park (“SO-UP”) Building 11, Floor 7


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract on behalf of the College with J. Tyler Services, Inc., 5920 Milwee, Houston, TX 77092 for the purchase and installation of movable furnishings in a sum not exceeding $250,000.

Rationale: The purchase is for the acquisition and installation of furnishings for the SO-UP Building 11, Floor 7 Renovation. This project requires renovation and interior build-out of a 25,000 square foot area that has not been previously occupied by personnel of the College. The project is for the entire floor and allows for growth within the College.

This purchase complies with Texas Education Code §44.031 (a)(4) allowing the use of cooperative contracts. The purchase from J. Tyler Services, Inc. is being conducted through Omnia Partners – Contract # ANK472 – 4400003403. A market analysis was conducted to determine best value.

Fiscal Impact: Funds for this purchase are available from the 2014 General Obligation Bonds, Series 2017A.


Exhibit "U"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract on Behalf of Lone Star College (the “College”) for Construction Services with G.A.M. Construction Inc. for Lone Star College-System Office University Park (“SO-UP”)


That the Board of Trustees authorize the Chancellor or designee to amend the contract on behalf of the College for construction services with G.A.M. Construction Inc. (“GAM”), 3091 College Park Drive, Suite 240-134, The Woodlands, Texas for the SO-UP renovation of Building 11, Floor 7 in a sum not exceeding $1,160,807.

Rationale: On May 2, 2019, the Board approved an agenda item that reflected the funding source as bond funds. The approved amendment amount for an additional $200,000 is to be funded from FY 2019 Repair and Replacement Funds. This additional amount will replace the existing mechanical system in Building 11, Floor 7.

The table below summarizes all transactions approved by the Board to date for this firm:

G.A.M. Construction

Inc. Board

Approval Description Sum Original

12/6/2018 Construction Services SO-UP 11.7 Renovations

$960,807

Approved Amendment 5/2/2019

Additional Construction Services

$200,000

Total $1,160,807

Fiscal Impact: Funds for these purchases are available from the approved FY 2019 Repair and Replacement budget.


Exhibit "V"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract on Behalf of Lone Star College (the “College”) for Additional Design Services with Texas-IBI Group for Lone Star College-North Harris (“LSC-North Harris”) for the East Aldine Center and for the Aldine Independent School District (“AISD”) Early College High School Facility


That the Board of Trustees authorize the Chancellor or designee to amend the contract on behalf of the College for additional architectural design services with Texas-IBI Group architects, 455 East Medical Center Blvd., Suite 500, Webster, Texas 77598, in a sum not exceeding $30,000 for a revised contract sum not exceeding $1,957,042.

Rationale: On August 7, 2014, the Board approved Texas-IBI Group, known at the time as Bay-IBI, to provide architectural services for the LSC-North Harris East Aldine Center. An amendment is required for additional architectural services related to revisions within the workforce portion of the facility that will convert a HVAC lab to a non-destructive testing lab.

The table below summarizes the approvals by the Board to date for this firm:

Texas-IBI Group

Board Approval Description Sum

Original 8/7/2014 Architectural Services $1,010,300

Board Approved 1st Amendment

3/2/2017 AISD Early College $816,542

Board Approved 2nd Amendment

9/7/2017 Code revisions and additions

$70,200

Board Approved 3rd Amendment

6/6/2019 Design Services for CISCO lab

$30,000

Proposed Amendment 8/1/2019 Workforce

revisions $30,000

Total $1,957,042

Fiscal Impact: Funds for this purchase are included in the 2014 General Obligation Bonds, Series 2017A.

Staff Resource: Gerald Napoles 281-618-5444

Exhibit "W"

Dwight Smith 832-813-6603 Jennifer Mott 832-813-6512


Request: Consideration of Approval to Amend the Annual Purchases of Technology Hardware, Software, and Services on Behalf of Lone Star College (the “College”) for FY 2019 Exhibit A List


That the Board of Trustees approve an amendment to the annual purchases of technology hardware, software, and services on behalf of the College for FY 2019 Exhibit A list for a sum not exceeding $200,000 for the Oracle PeopleSoft (iStar) support and maintenance contract for a total contract sum not exceeding $2,200,000.

Rationale: On August 2, 2018, the Board of Trustees approved the purchase of annual technology hardware, software, and services for a sum not exceeding $15,000,000. The board also reaffirmed the May 7, 2009 Purchase, Implementation, and Support Costs of the Lone Star College Enterprise Resources Planning System (iStar). Additionally, the Board authorized the Chancellor or a designee to execute the contracts detailed in Appendix A for the not-to-exceed sums listed therein.

The Oracle PeopleSoft (iStar) support & maintenance contract was listed for a sum not exceeding $2,000,000. The increase is needed due to the addition of Oracle Cloud Broker, Talent Acquisition Management (“TAM”) maintenance, Lease Management Module, and the normal annual support cost increase for the College Oracle licensed products. This cost is estimated at $2,200,000.

Fiscal Impact: Funds for these purchases are included in the approved FY2019 College Services operating budget.

Staff Resource: Link Alander 832-813-6832Jennifer Mott 832-813-6512

Exhibit "X"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Purchase Additional Cisco Network Hardware, Software, and Maintenance on Behalf of Lone Star College (the “College”)


That the Board of Trustees authorize the Chancellor or designee to purchase additional Cisco network hardware, software, and maintenance on behalf of the College from Netsync Network Solutions, 2500 West Loop South, Suite 410, Houston, Texas 77027, for a sum not exceeding $7,000,000 for a total revised sum not exceeding $14,000,000 over the two-year period.

Rationale: On May 3, 2018, the Board approved the purchase of Cisco network hardware, software, and maintenance from Netsync Network Solutions for a sum not exceeding $7,000,000 over a two-year period.

This request will increase the previous board approved amount and allow for the purchase of bond-funded projects for new construction and renovations enabling the College to upgrade network equipment as scheduled and decommission network equipment that has reached the end of its useful life.

A new market analysis will be performed prior to the expiration of current analysis in March 2020.

Fiscal Impact: $4,200,000 for this purchase is included in the College Services proposed FY 2020. $2,800,000 for this purchase is included in the 2014 General Obligation Bonds, Series 2017A. Funds for subsequent fiscal years will be included in future proposed budgets.


Exhibit "Y"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Contracts on Behalf of Lone Star College (the “College”) to Purchase Real Estate and to Negotiate and Execute Agreements and Easements Related to the Property for the Lone Star College-Montgomery (“LSC-Montgomery”) Satellite Center


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute one or more contracts on behalf of the College to purchase real estate in Magnolia, Texas for the LSC-Montgomery Satellite Center. The property will be purchased at or below appraised value for a sum not exceeding $5,000,000. In addition, that the Board of Trustees authorize the Chancellor or designee to negotiate and execute any required Agreements and Easements with the property owner(s), improvement district(s), municipal utility district(s), and utility providers necessary for access and utility service to the LSC-Montgomery Satellite Center.

Rationale: The College intends to construct the LSC-Montgomery Satellite Center included in the General Obligation Bond program approved by the voters November 4, 2014. The Center will include classrooms, computer labs, offices, a data center, and collaborative workspaces allowing students to experience real-world work environments.

The College purchased land January 2019 for this purpose. TxDOT has plans to build a highway through the property making the site no longer be suitable for a satellite center. The College is exploring with the relevant authorities the options related to the already-purchased site. In the meantime, the College wishes to pursue alternative land for the Magnolia Satellite Center.

The College will retain professional engineering and surveying firms to perform due diligence on the property. Additionally, a market analysis and appraisal will be performed.

Fiscal Impact: Funds for this purchase are available from the General Obligation Bonds, Series 2017A.


Exhibit "Z"

Special Report and Consideration No. 1 (ACTION ITEM 25) Board Meeting 8-1-19

Request: Consideration of Approval to Adopt a Resolution Casting a Ballot for the Nominee Named in the Resolution to Serve as a Member of the Board of Directors of the Harris County Appraisal District for the Remainder of the Two-Year Term of Office Ending December 31, 2019


That the Board of Trustees adopt a resolution casting a ballot for the one of the four nominees selected by the Board to serve as a member of the board of directors of the Harris County Appraisal District for the remainder of the two-year term of office for Pete Pape ending December 31, 2019.

Rationale: With the resignation of Pete Pape, the Harris County Appraisal District Board of Directors has an opening to fill the remainder of Mr. Pape’s two-year term of office. See Sec. 6.031(b-1), Tax Code. The boards of trustees of junior college districts may each nominate a candidate. However, the four junior colleges collectively have a single vote in the election. The collective vote will be automatically cast for the candidate who receives the most votes from among the junior colleges. As an example, if one candidate receives three votes and another receives one vote, the junior colleges will be deemed to have collectively cast their vote for the candidate who received the three votes. The candidates are:

Jennifer Key Ben Pape Robert Sitton Dee Anne Thompson

Fiscal Impact: None.

Staff Resource: Helen Clougherty 832-813-6514

Exhibit "aa"

Personnel Report and Consideration No. 1 (ACTION ITEM 26) Board Meeting 8-1-19

Request: Consideration and Authorization for the Chancellor or Designee to Execute Proposed Employment Contracts for the Attached Individuals


That the Board of Trustees authorize the Chancellor or a designee to execute proposed employment contracts for the attached individuals. Each individual’s name, job title, not-to-exceed contract sum, and hire start date is attached.

Rationale: Board Policy Section III.D.1.3.(a) requires Board approval of employment contracts. In accordance with this policy, this authorization would expressly delegate such authority to the Chancellor or a designee for the attached individuals.

Fiscal Impact: Positions and salaries have been budgeted for 2019–2020.

Staff Resource: Mario K. Castillo 832-813-6606

Exhibit "bb"

Employment Contracts

Name Job Title

Not-to-Exceed

Contract Sum

Hire Date

Armstrong, Diana Executive Director, Real Estate $92,410 5/1/2019 Bright, Cynthia Executive Director, Procurement $92,410 6/1/2019

Dodd, William Executive Director, Facilities/ Construction Procurement $105,075 6/1/2019

Gilmore, Jesse Project Director, Facilities $74,380 5/16/2019 Huff, Chad Executive Director, Construction $106,800 5/16/2019 Jones, Latasha Director, Outreach and Communications $70,020 6/17/2019 Korah, Abraham Special Assistant to President $99,340 5/20/2019 Lasyone, James Director, Professional Development $65,140 6/3/2019 Lowry, Kimberly Vice President, Student Services & Instruction $125,140 5/1/2019 Mayon, Darrell Assistant Professor, Process Technology $67,640 7/1/2019 Montifar, Mary Anne Project Director, Facilities $74,380 6/10/2019 Simpson, Charity Director, Business Operations $74,380 6/3/2019

Ulacio Alvarez, Yoel Workforce Skilled Trade Instructor, Electrical Technology Occupational Skills $69,118 6/3/2019

Personnel Report and Consideration No. 2 (ACTION ITEM 27) Board Meeting 8-1-19

Request: Consideration of Approval or Ratification of Chancellor’s Contract

Recommendation: Consideration and Approval for Execution of the Chancellor’s Proposed Contract

Exhibit "cc"

Financial Report and Consideration No. 1 Board Meeting 8-1-19

Report: Monthly Financial Statements

The financial statements for the month ended June 30, 2019 and May 31, 2019

and the quarterly investment report for the period ending May 31, 2019 are

presented for Board review.

Exhibit "dd"

1

LONE STAR COLLEGE

Statement of Revenues and ExpendituresGeneral and Auxiliary FundsYTD June 30, 2019Unaudited

PRIOR YEAR

% ACTUAL PRIOR YEAR % ACTUAL

TO BUDGET ACTUAL TO BUDGET

FORECASTED FISCAL YTD 83% FY FISCAL YTD 83% FY

BUDGET VARIANCE ACTUAL ELAPSED 6/30/2018 ELAPSED

REVENUES:

State Appropriations $ 77,983,684 $ (1,693) $ 63,165,413 81.0% $ 63,167,106 81.0%

Tuition and Fees 124,416,026 (5,318,779) 118,476,638 95.2% 117,503,574 92.9%

Taxes 161,159,785 (5,659,785) 152,221,483 94.5% 146,874,857 96.6%

Investments 1,660,907 939,093 2,032,250 122.4% 1,210,375 185.6%

Product/Service 6,598,334 205,206 5,649,814 85.6% 6,050,194 84.2%

Misc Revenues 9,365,452 395,974 7,696,308 82.2% 7,663,281 81.6%

Total Revenues 381,184,188 (9,439,984) 349,241,906 91.6% 342,469,387 91.6%

EXPENDITURES:

Full Time Faculty 71,202,551 (664,312) 59,360,994 83.4% 56,771,536 80.7%

Part Time Faculty 30,691,819 26,843,480 87.5% 27,690,066 88.1%

Full Time Staff 112,356,422 (946,141) 90,825,829 80.8% 83,846,650 78.9%

Part Time Staff 12,194,963 8,223,346 67.4% 7,432,839 69.7%

Staff Benefits 34,644,224 25,243,556 72.9% 23,921,750 71.1%

Other Employee Benefits 2,839,763 2,363,809 83.2% 1,931,792 141.6%

Services 45,007,659 1,200,000 32,202,864 71.5% 28,210,655 68.9%

ProfDev/Travel 4,169,301 2,537,351 60.9% 2,114,056 58.3%

Supplies 13,549,393 8,792,690 64.9% 8,471,003 57.8%

Monthly Charges 7,382,273 4,128,711 55.9% 3,400,261 52.9%

Utilities 9,853,092 7,626,350 77.4% 6,856,362 70.0%

Other 13,235,908 (4,924,234) 2,360,425 17.8% 2,244,808 15.5%

Non-Capital Equipment 7,795,869 4,854,761 62.3% 4,579,768 82.0%

CIP Land/Building 62,550 43,485 69.5% 0 0.0%

Capital Expenditures 304,120 185,050 60.8% 255,746 71.8%

Furniture, Fixture, Equipment 2,533,772 851,283 33.6% 343,874 12.7%

Total Expenditures 367,823,679 (5,334,687) 276,443,985 75.2% 258,071,166 73.3%

Other Changes - Debt Service Transfers 8,200,000 - 5,591,847 6,428,097

Other Changes - R&R Transfers 5,942,409 - 5,642,409 5,548,877

Total Operating Transfers 14,142,409 - 11,234,256 11,976,974

Total Expenditures & Transfers 381,966,088 (5,334,687) 287,678,241 270,048,140

TOTAL NET INCREASE IN FUND BALANCES $ (781,900) $ (4,105,297) $ 61,563,665 $ 72,421,247

LONG TERM CASH RESERVES: FORECAST

Revised Forecasted Net Increase in Fund Balance $ (4,887,197)

FY 2019 "One-Time" Cash Transactions (2,726,325)

Beginning Cash Reserves, 9/1/2018 66,670,194

Forecasted Cash Reserves, 8/31/2019 $ 59,056,672

LONG TERM CASH RESERVES AS A % OF

BUDGETED EXPENDITURES 16.1%

2

LONE STAR COLLEGE

Balance Sheet

June 30, 2019

Unaudited

GASB Memorandum Memorandum

General & Reporting Totals Totals

ASSETS Restricted Entries (*) Current Year Prior Year

Cash, cash equivalents & investments $ 136,734,279 $ 131,424,266 $ $ 268,158,545 $ 340,262,531

Accounts receivable, net 19,853,637 5,516,923 5,642,501 31,013,061 28,654,723

Prepaid and deferred expenses 1,437,169 - 1,437,169 1,455,072

Inventories, at cost - - -

Capital assets, net - - 883,917,407 883,917,407 835,979,896

TOTAL ASSETS 158,025,085 136,941,189 889,559,908 1,184,526,182 1,206,352,222

Deferred Outflows Pension & OPEB - - 17,189,226 17,189,226 18,373,377

TOTAL ASSETS AND DEFERRED OUTFLOWS $ 158,025,085 $ 136,941,189 $ 906,749,134 $ 1,201,715,408 $ 1,224,725,599

LIABILITIES AND FUND BALANCES

LIABILITIES:

Accounts payable $ 22,318,307 $ 2,824,998 $ 25,143,305 $ 9,984,120

Deferred revenues 5,454,148 3,071,355 - 8,525,503 9,041,203

Accrued compensable absences payable 10,688,199 106,759 - 10,794,958 4,449,709

Accrued interest payable - 12,055,691 - 12,055,691 12,585,150

Bonds payable - - 733,881,962 733,881,962 800,210,016

Net Pension & OPEB Liability - - 136,509,334 136,509,334 62,494,141

Assets held in custody for others - 8,666,441 - 8,666,441 11,012,075

L/T Due to Other Local Government - 16,521,601 - 16,521,601 16,518,858

TOTAL LIABILITIES 38,460,654 43,246,845 870,391,296 952,098,795 926,295,272

Deferred Inflows Pension & OPEB - - 32,089,673 32,089,673 10,662,554

TOTAL LIABILITIES AND DEFERRED INFLOWS 38,460,654 43,246,845 902,480,969 984,188,468 936,957,826

FUND BALANCES:

Unrestricted Operating 10,476,137 - - 10,476,137 15,666,654

Restricted for Technology 8,017,241 - - 8,017,241 5,891,573

Restricted for Student Activity 1,897,328 - - 1,897,328 2,162,780

Unrestricted Auxiliary 2,185,513 - - 2,185,513 1,641,499

Unrestricted Tenant Related 8,303,099 - - 8,303,099 7,374,420

Restricted Operating Cash - Short Term Reserves 28,034,438 - - 28,034,438 37,728,378

Restricted Operating Cash - Long Term Reserves 60,650,675 - - 60,650,675 60,188,083

Restricted for Grants - (34,141,176) - (34,141,176) (6,884,467)

Restricted for Debt Service - 53,158,453 - 53,158,453 51,967,489

Restricted for Construction - 74,677,067 - 74,677,067 127,201,101

TOTAL FUND BALANCES 119,564,431 93,694,344 4,268,165 217,526,940 287,767,773

TOTAL LIABILITIES, DEFERRED INFLOWS AND

FUND BALANCES $ 158,025,085 $ 136,941,189 $ 906,749,134 $ 1,201,715,408 $ 1,224,725,599

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

Auxiliary

3

LONE STAR COLLEGE

Statement of Revenues and ExpendituresFund 35 Harvey RecoveryPROFORMA from inception to 06.30.19Unaudited

System Office North Harris Kingwood Tomball Montgomery CyFair University Park UP SO Grand TotalACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL

REVENUES:

Revenue 11,770,385$ - - - - - - - 11,770,385

Total Revenues 11,770,385$ - - - - - - - 11,770,385

EXPENDITURES:

Buildings 8,744$ 49,733 21,683,780 17,566 6,839 796,629 10,671 22,573,961 Contracts 786,279 1,832 11,198,263 49,212 85,495 10,855 12,131,935 Equipment 577,564 7,112,243 18,813 204,779 7,913,399 Insurance Deductible/Attorney 1,504,050 25,000 1,529,050 Personnel 319,923 11,679 680367 16,561 12,905 21,946 11,365 30,084 1,104,829 Supplies 20,264 1,567 641,141 5,819 1,171 5,876 675,838 Travel 1,563 203 1,149 2 2,917 -

Total Expenditures 3,218,387$ 65,013 41,316,942 22,381 80,853 138,968 1,048,629 40,757 45,931,929

FUND BALANCE - Increase (Decrease) 8,551,998$ (65,013) (41,316,942) (22,381) (80,853) (138,968) (1,048,629) (40,757) (34,161,545)

Encumbrances - - (6,112,870) - - (52,609) (453,345) (2,500) (6,621,323)

ADJUSTED FUND BALANCE 8,551,998$ (65,013) (47,429,811) (22,381) (80,853) (191,577) (1,501,973) (43,257) (40,782,867)

LONE STAR COLLEGE

Balance Sheet

Fund 35 Harvey Recovery

As of 06.30.19

Unaudited

All Locations

ASSETS

Cash & Cash Equivalents $

Accounts receivable, net 552,334

Prepaid and deferred expenses -

TOTAL ASSETS 552,334


LIABILITIES:

Accounts payable $ 1,473,488

Due To Others 33,240,391

TOTAL LIABILITIES 34,713,879

TOTAL FUND BALANCE (34,161,545)

TOTAL LIABILITIES AND FUND BALANCE $ 552,334

5

DEPOSITORY 2,000,000$

Operating Cash - Subtotal 2,000,000$

POOLS 24,165,297$

MONEY MARKET ACCOUNTS 1,869,141

Operating Short Term Cash ReservesSubtotal 26,034,438$

US GOVT. AGENCIES 34,234,784$

MUNICIPAL BONDS 4,767,083

US TREASURY NOTES 12,795,242

COMMERCIAL PAPER 8,853,566

Operating Long Term Cash Reserves Subtotal 60,650,675$

TOTAL 88,685,113$

OPERATING FUNDS 06/30/2019

LONE STAR COLLEGE

SUMMARY OF OPERATING FUNDS

AS OF JUNE 30, 2019

OPERATING SHORT TERM CASH

OPERATING LONG TERM CASH RESERVES

6

QUARTERLY INVESTMENT REPORT

FOR THE QUARTER ENDED

May 31, 2019

Prepared byTreasury Department

/s/ Jennifer MottJennifer Mott, CFA Chief Financial Officer

/s/ Tammy CortesTammy Cortes, Associate Vice Chancellor, Financial Planning, Analysis & Treasury

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

7

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORTAS OF MAY 31, 2019

Quarter End Results by Investment Category:

Portfolio Book Value Unrealized Market Value Portfolio Book Value Unrealized Market ValueType of Security % 5/31/2019 Gains / (Losses) 5/31/2019 % 2/28/2019 Gains / (Losses) 2/28/2019

Investment Pools, MMKT and Depository 69.2% 193,622,667$ -$ 193,622,667$ 67.2% 225,198,080$ -$ 225,198,080$ Securities 30.8% 85,248,018 749,614 85,997,632 32.8% 109,284,972 507,608 109,792,580 Portfolio Total 100.0% 278,870,685$ 749,614$ 279,620,299$ 100.0% 334,483,052$ 507,608$ 334,990,660$

TexPool 2.55% TexPool 2.59%Logic 2.54% Logic 2.61%Lone Star 2.54% Lone Star 2.62%Southside 2.64% Southside 2.63%

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, 2019 the rate was 2.38%.

Average Yield as of May 31, 2019 Average Yield as of February 28, 2019

8

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORTFOR THE QUARTER ENDED MAY 31, 2019

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

Date Date Amount Yield 2/28/2019 2/28/2019 Payments Purchased Matured Amortization 5/31/2019 Gain / (Loss) 5/31/2019INVESTMENT POOLS, MMKT & DEPOSITORY

TexPool 9/23/1993 N/A N/A N/A 216,521$ 216,521$ 1,322$ -$ -$ -$ 217,843$ -$ 217,843$ TexPool Prime 9/23/1993 N/A N/A N/A 5,664,197 5,664,197 37,623 22,515,191 23,388,000 - 4,829,011 - 4,829,011$ Logic 9/03/1996 N/A N/A N/A 29,600,265 29,600,265 80,498 2,600,000 22,900,154 - 9,380,610 - 9,380,610$ Lone Star-Govt 3/29/2001 N/A N/A N/A 62,476 62,476 936 7,085,352 7,147,655 - 1,109 - 1,109$ Lone Star-Corporate 3/29/2001 N/A N/A N/A 1,079,905 1,079,905 7,002 - - - 1,086,907 - 1,086,907$ Lone Star-Corporate Plus 1/26/2001 N/A N/A N/A 174,627,204 174,627,204 1,151,212 83,748,834 90,904,019 - 168,623,231 - 168,623,231$ *LSCS-Corp Plus_AldineISD 12/14/2016 N/A N/A N/A 10,094,548 10,094,548 48,566 - 4,524,380 - 5,618,734 - 5,618,734$ Southside - MMA 4/27/2011 N/A N/A N/A 1,852,963 1,852,963 12,259 - - - 1,865,222 - 1,865,222$ JPMC-Depository 9/01/2016 N/A N/A N/A 2,000,000 2,000,000 - - - - 2,000,000 - 2,000,000

TOTAL 225,198,080 225,198,080 1,339,418 115,949,377 148,864,208 - 193,622,667 - 193,622,667

COMMERCIAL PAPERToyota MTR 1/25/2019 9/23/2019 3,000,000 2.63% 3,000,000 2,948,587 - - - - 2,948,587 51,413 3,000,000 JP Morgan Sec 2/13/2019 11/8/2019 3,000,000 2.68% 3,000,000 2,941,933 - - - - 2,941,933 58,067 3,000,000 JP Morgan Sec 4/10/2019 10/8/2019 3,000,000 2.52% - - - 3,000,000 - (36,954) 2,963,046 36,954 3,000,000 JP Morgan Sec 10/16/2018 7/12/2019 5,000,000 2.81% 5,000,000 4,898,004 - - - - 4,898,004 101,996 5,000,000 JP Morgan Sec 10/16/2018 7/12/2019 5,000,000 2.80% 5,000,000 4,898,378 - - - - 4,898,378 101,622 5,000,000 JP Morgan Sec 10/16/2018 7/1/2019 5,000,000 2.80% 5,000,000 4,902,712 - - - - 4,902,712 97,288 5,000,000 Toyota MTR 10/16/2018 7/12/2019 5,000,000 2.77% 5,000,000 4,899,499 - - - - 4,899,499 100,501 5,000,000

TOTAL 26,000,000 25,489,113 - 3,000,000 - (36,954) 28,452,159 547,841 29,000,000

BONDS

Municipal Bond 02/16/2018 7/1/2019 3,170,000 2.23% 3,164,611 3,167,084 - - - - 3,167,084 2,345 3,169,429 Municipal Bond 03/30/2017 3/15/2020 1,600,000 1.60% 1,584,640 1,600,000 - - - - 1,600,000 (5,634) 1,594,366 TOTAL 4,749,251 4,767,084 - - - - 4,767,084 (3,289) 4,763,795

US TREASURY NOTES

Treasury Notes 1/25/2019 11/15/2019 4,000,000 2.56% 3,956,564 3,950,633 - - - - 3,950,633 23,899 3,974,532 Treasury Notes 2/28/2019 10/31/2020 6,000,000 2.52% 5,884,920 5,888,203 - - - - 5,888,203 43,595 5,931,798 Treasury Notes 2/28/2019 8/15/2020 3,000,000 2.52% 2,955,117 2,956,406 - - - - 2,956,406 16,759 2,973,165

12,796,601 12,795,242 - - - - 12,795,242 84,253 12,879,495

US GOVT. AGENCIES

FAMCA 2/21/2017 08/21/2019 3,000,000 1.45% 2,985,174 3,000,000 - - - - 3,000,000 (7,095) 2,992,905 FHLMC 4/3/2018 09/27/2019 3,000,000 2.27% 2,982,609 2,966,430 - - - - 2,966,430 25,899 2,992,329 FNMA 4/3/2018 11/26/2019 3,000,000 2.23% 2,982,576 2,976,780 - - - - 2,976,780 13,677 2,990,457 FHLB-Step Up 4/20/2018 10/20/2020 5,000,000 2.97% 4,999,525 5,000,000 - - 5,000,000 - - - - FAMCA 5/21/2018 10/21/2019 4,000,000 2.51% 3,999,792 3,998,080 - - - - 3,998,080 4,828 4,002,908 FAMCA 8/31/2018 8/28/2019 3,000,000 2.48% 3,000,108 3,000,000 - - - - 3,000,000 510 3,000,510 FHLB 1/25/2019 9/26/2019 3,000,000 2.57% 2,974,287 2,968,895 - - - - 2,968,895 17,230 2,986,125 FHLB 1/25/2019 12/13/2019 3,000,000 2.58% 3,035,004 3,040,174 - - - - 3,040,174 (13,000) 3,027,174 FHLB 2/14/2019 9/28/2020 3,000,000 2.56% 6,259,313 6,255,399 - - - - 6,255,399 51,344 6,306,743 FHLB 2/14/2019 12/11/2020 3,000,000 2.58% 3,028,905 3,029,025 - - - - 3,029,025 18,192 3,047,217 FHLB 5/10/2019 10/15/2021 3,000,000 2.55% - - 3,000,000 - - 3,000,000 1,599 3,001,599 FAMCA 4/2/2018 4/15/2019 10,000,000 2.18% 9,997,730 10,000,000 - - 10,000,000 - - - - FAMCA 4/2/2018 4/15/2019 15,000,000 2.18% 14,996,595 15,000,000 - - 15,000,000 - - - - FFCB 10/16/2018 10/10/2019 5,000,000 2.68% 5,005,110 4,998,750 - - - - 4,998,750 7,625 5,006,375

TOTAL 66,246,728 66,233,533 3,000,000 30,000,000 - 39,233,533 120,809 39,354,342

SUMMARYINVESTMENT POOLS, MMKT & DEPOSITORY 225,198,080 225,198,080 1,339,418 115,949,377 148,864,208 - 193,622,667 - 193,622,667 COMMERCIAL PAPER 26,000,000 25,489,113 - 3,000,000 - (36,954) 28,452,159 547,841 29,000,000 BONDS 4,749,251 4,767,084 - - - - 4,767,084 (3,289) 4,763,795 US TREASURY NOTES 12,796,601 12,795,242 - - - - 12,795,242 84,253 12,879,495 US GOVT. AGENCIES 66,246,728 66,233,533 - 3,000,000 30,000,000 - 39,233,533 120,809 39,354,342 PORTFOLIO TOTAL 334,990,660$ 334,483,052$ 1,339,418$ 121,949,377$ 178,864,208$ (36,954)$ 278,870,685$ 749,614$ 279,620,299$

Period Book / Market Transactions

9

LONE STAR COLLEGE INVESTMENT PORTFOLIO COMPOSITIONFOR THE QUARTER ENDED MAY 31, 2019

/s/ Jennifer OlenickJennifer Olenick, CFA Vice Chancellor, Finance & Administration

/s/ Tammy Cortes

Texpool2%

LSIP62%Logic

3%MMA1%

JPMC-Dep1%

CP10%

Muni Bond2%

US Govt. Agencies

14%

Treas Notes5%

Texpool LSIP Logic MMA JPMC-Dep CP Muni Bond US Govt. Agencies Treas Notes

10

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORT BY FUNDFOR THE QUARTER ENDED MAY 31, 2019

FUND: OPERATING (UNRESTRICTED)

OPERATING CASHBeginning Beginning Ending Period Ending

Purchase/Opened Maturity Face Buy Market Value Book Value Interest Securities Securities Disc. / Prem. Book Value Unrealized Market ValueDate Date Amount Yield 2/28/2019 2/28/2019 Payments Purchased Matured Amortization 5/31/2019 Gain / (Loss) 5/31/2019

INVESTMENT POOLS, MMKT & DEPOSITORY

TexPool Prime 9/23/1993 N/A N/A N/A 5,664,197$ 5,664,197$ 37,623$ 22,515,191$ 23,388,000$ -$ 4,829,011$ -$ 4,829,011$ Logic 9/03/1996 N/A N/A N/A 29,530,091 29,530,091 80,042 2,600,000 22,900,154 - 9,309,979 - 9,309,979 Lone Star-Govt 3/29/2001 N/A N/A N/A 62,476 62,476 936 7,085,352 7,147,655 - 1,109 - 1,109 Lone Star-Corporate 3/29/2001 N/A N/A N/A 1,066,024 1,066,024 6,912 - - - 1,072,936 - 1,072,936 Lone Star-Corporate Plus 1/26/2001 N/A N/A N/A 56,226,537 56,226,537 269,138 49,288,528 84,246,767 - 21,537,436 - 21,537,436 Southside - MMA 4/27/2011 N/A N/A N/A 1,852,963 1,852,963 12,259 - - - 1,865,222 - 1,865,222 JPMC-Depository 9/01/2016 N/A N/A N/A 2,000,000 2,000,000 - - - - 2,000,000 - 2,000,000

TOTAL 96,402,288 96,402,288 406,910 81,489,071 137,682,576 - 40,615,693 - 40,615,693

CASH RESERVES

COMMERCIAL PAPER

Toyota MTR 1/25/2019 9/23/2019 3,000,000 2.63% 3,000,000 2,948,587 - - - - 2,948,587 51,413 3,000,000 JP Morgan Sec 2/13/2019 11/8/2019 3,000,000 2.68% 3,000,000 2,941,933 - - - - 2,941,933 58,067 3,000,000 JP Morgan Sec 4/10/2019 10/8/2019 3,000,000 2.52% - - - 3,000,000 - (36,954) 2,963,046 36,954 3,000,000

TOTAL 6,000,000 5,890,520 - 3,000,000 - (36,954) 8,853,566 146,434 9,000,000

BONDSMunicipal Bond 03/30/2017 3/15/2020 1,600,000 1.60% 1,584,640 1,600,000 - - - - 1,600,000 (5,634) 1,594,366 Municipal Bond 02/16/2018 7/1/2019 3,170,000 2.23% 3,164,611 3,167,084 - - - - 3,167,084 2,345 3,169,429

TOTAL 4,749,251 4,767,084 - - - - 4,767,084 (3,289) 4,763,795

US TREASURY NOTESTreasury Notes 1/25/2019 11/15/2019 4,000,000 2.56% 3,956,564 3,950,633 - - - - 3,950,633 23,899 3,974,532 Treasury Notes 2/28/2019 10/31/2020 6,000,000 2.52% 5,884,920 5,888,203 - - - - 5,888,203 43,595 5,931,798 Treasury Notes 2/28/2019 8/15/2020 3,000,000 2.52% 2,955,117 2,956,406 - - - - 2,956,406 16,759 2,973,165

TOTAL 12,796,601 12,795,242 - - - - 12,795,242 84,253 12,879,495

US GOVT. AGENCIESFAMCA 2/21/2017 08/21/2019 3,000,000 1.45% 2,985,174 3,000,000 - - - - 3,000,000 (7,095) 2,992,905 FHLMC 4/3/2018 09/27/2019 3,000,000 2.27% 2,982,609 2,966,430 - - - - 2,966,430 25,899 2,992,329 FNMA 4/3/2018 11/26/2019 3,000,000 2.23% 2,982,576 2,976,780 - - - - 2,976,780 13,677 2,990,457 FHLB-Step Up 4/20/2018 10/20/2020 5,000,000 2.97% 4,999,525 5,000,000 - - 5,000,000 - - - - FAMCA 5/21/2018 10/21/2019 4,000,000 2.51% 3,999,792 3,998,080 - - - - 3,998,080 4,828 4,002,908 FAMCA 8/31/2018 8/28/2019 3,000,000 2.48% 3,000,108 3,000,000 - - - - 3,000,000 510 3,000,510 FHLB 1/25/2019 9/26/2019 3,000,000 2.57% 2,974,287 2,968,895 - - - - 2,968,895 17,230 2,986,125 FHLB 1/25/2019 12/13/2019 3,000,000 2.58% 3,035,004 3,040,174 - - - - 3,040,174 (13,000) 3,027,174 FHLB 2/14/2019 9/28/2020 3,000,000 2.56% 6,259,313 6,255,399 - - - - 6,255,399 51,344 6,306,743 FHLB 2/14/2019 12/11/2020 3,000,000 2.58% 3,028,905 3,029,025 - - - - 3,029,025 18,192 3,047,217 FHLB 5/10/2019 10/15/2021 3,000,000 2.55% - - - 3,000,000 - - 3,000,000 1,599 3,001,599

TOTAL 36,247,293 36,234,783 - 3,000,000 5,000,000 - 34,234,783 113,184 34,347,967

SUMMARY:INVESTMENT POOLS, MMKT & DEPOSITORY 96,402,288 96,402,288 406,910 81,489,071 137,682,576 - 40,615,693 - 40,615,693 COMMERCIAL PAPER 6,000,000 5,890,520 - 3,000,000 - (36,954) 8,853,566 146,434 9,000,000 MUNICIPAL BONDS 4,749,251 4,767,084 - - - - 4,767,084 (3,289) 4,763,795 US TREAS NOTES 12,796,601 12,795,242 - - - - 12,795,242 84,253 12,879,495 US GOVT. AGENCIES 36,247,293 36,234,783 - 3,000,000 5,000,000 - 34,234,783 113,184 34,347,967

PORTFOLIO TOTAL 156,195,433$ 156,089,917$ 406,910$ 87,489,071$ 142,682,576$ (36,954)$ 101,266,368$ 340,582$ 101,606,950$


11

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORT BY FUNDFOR THE QUARTER ENDED MAY 31, 2019

FUND: CONSTRUCTION IN PROGRESS


Date Date Amount Yield 2/28/2019 2/28/2019 Payments Purchased Matured Amortization 5/31/2019 Gain / (Loss) 5/31/2019INVESTMENT POOLS AND MONEY MARKET

Lone Star-Corp Plus Fund 3/29/2001 N/A N/A N/A 61,496,397$ 61,496,397$ 465,667$ 25,338,728$ 6,242,039$ -$ 81,058,753$ -$ 81,058,753$

SUB-TOTAL 61,496,397 61,496,397 465,667 25,338,728 6,242,039 - 81,058,753 - 81,058,753

*LSCS-Corp Plus_AldineISD 12/14/2016 N/A N/A N/A 10,094,548 10,094,548 48,566 - 4,524,380 - 5,618,734 - 5,618,734

SUB-TOTAL 10,094,548 10,094,548 48,566 - 4,524,380 - 5,618,734 - 5,618,734

TOTAL 71,590,945 71,590,945 514,233 25,338,728 10,766,419 - 86,677,487 - 86,677,487

US GOVT. AGENCIESFAMCA 4/2/2018 4/15/2019 10,000,000 2.18% 9,997,730 10,000,000 - - 10,000,000 - - - - FAMCA 4/2/2018 4/15/2019 15,000,000 2.18% 14,996,595 15,000,000 - - 15,000,000 - - - - FFCB 10/16/2018 10/10/2019 5,000,000 2.68% 5,005,110 4,998,750 - - - - 4,998,750 7,625 5,006,375

TOTAL 29,999,435 29,998,750 - - 25,000,000 - 4,998,750 7,625 5,006,375

COMMERCIAL PAPERJP Morgan Sec 10/16/2018 7/12/2019 5,000,000 2.81% 5,000,000 4,898,004 - - - - 4,898,004 101,996 5,000,000 JP Morgan Sec 10/16/2018 7/12/2019 5,000,000 2.80% 5,000,000 4,898,378 - - - - 4,898,378 101,622 5,000,000 JP Morgan Sec 10/16/2018 7/1/2019 5,000,000 2.80% 5,000,000 4,902,712 - - - - 4,902,712 97,288 5,000,000 Toyota MTR 10/16/2018 7/12/2019 5,000,000 2.77% 5,000,000 4,899,499 - - - - 4,899,499 100,501 5,000,000

TOTAL 20,000,000 19,598,593 - - - - 19,598,593 401,407 20,000,000

SUMMARY:INVESTMENT POOLS AND MONEY MARKET 71,590,945 71,590,945 514,233 25,338,728 10,766,419 - 86,677,487 - 86,677,487 US GOVT. AGENCIES 29,999,435 29,998,750 - - 25,000,000 - 4,998,750 7,625 5,006,375 COMMERCIAL PAPER 20,000,000 19,598,593 - - - - 19,598,593 401,407 20,000,000 PORTFOLIO TOTAL 121,590,380$ 121,188,288$ 514,233$ 25,338,728$ 35,766,419$ -$ 111,274,830$ 409,032$ 111,683,862$

*Funds belong to Aldine Independent School District for the construction of the MacArthur Early College Facility at LSC-East Aldine Satellite Center.


12

LONE STAR COLLEGE

INVESTMENT PORTFOLIO REPORT

FOR THE QUARTER ENDED MAY 31, 2019

FUND:


Date Date Amount Yield 2/28/2019 2/28/2019 Payments Purchased Matured Amortization 5/31/2019 Gain / (Loss) 5/31/2019INVESTMENT POOLS AND MONEY MARKET

TexPool 9/23/1993 N/A N/A N/A 216,521$ 216,521$ 1,322$ -$ -$ -$ 217,843$ -$ 217,843$ Logic-Debt Service 9/03/1996 N/A N/A N/A 70,173 70,173 457 - - - 70,630 - 70,630 Logic-R&R 10/01/2017 N/A N/A N/A 1 1 - - - - 1 - 1 Lone Star-Corporate 3/29/2001 N/A N/A N/A 13,881 13,881 90 - - - 13,971 - 13,971 Lone Star-Corporate Plus 1/26/2001 N/A N/A N/A 56,904,270 56,904,270 416,407 9,121,578 415,213 - 66,027,042 - 66,027,042

TOTAL 57,204,847 57,204,847 418,276 9,121,578 415,213 - 66,329,487 - 66,329,487

SUMMARY:

INVESTMENT POOLS AND MONEY MARKET 57,204,847 57,204,847 418,276$ 9,121,578 415,213 - 66,329,487 - 66,329,487 PORTFOLIO TOTAL 57,204,847$ 57,204,847$ 418,276$ 9,121,578$ 415,213$ -$ 66,329,487$ -$ 66,329,487$


INTEREST & SINKING

13

LONE STAR COLLEGE TOTAL INVESTMENT PORTFOLIO BOOK VALUEFOUR YEAR COMPARISON THROUGH MAY 31, 2019

/s/ Jennifer OlenickJennifer Olenick, CFA Vice Chancellor, Finance & Administration

/s/ Tammy Cortes

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

400,000,000.00

450,000,000.00

14

May 31, 2019

Financial Statements

15

16

LONE STAR COLLEGE

Statement of Revenues and ExpendituresGeneral and Auxiliary FundsYTD May 31, 2019Unaudited

PRIOR YEAR

% ACTUAL PRIOR YEAR % ACTUAL

TO BUDGET ACTUAL TO BUDGET

FORECASTED FISCAL YTD 75% FY FISCAL YTD 75% FY

BUDGET VARIANCE ACTUAL ELAPSED 5/31/2018 ELAPSED

REVENUES:

State Appropriations $ 77,983,684 $ (1,693) $ 55,757,124 71.5% $ 55,758,817 71.5%

Tuition and Fees 124,416,026 (5,318,779) 99,684,002 80.1% 98,026,212 77.5%

Taxes 161,159,785 (5,659,785) 151,419,275 94.0% 145,892,563 95.9%

Investments 1,660,907 939,093 1,857,812 111.9% 1,107,507 169.9%

Product/Service 6,598,334 205,206 5,086,663 77.1% 5,464,749 76.0%

Misc Revenues 9,365,452 395,974 6,739,368 72.0% 7,202,391 76.7%

Total Revenues 381,184,188 (9,439,984) 320,544,244 84.1% 313,452,239 83.9%

EXPENDITURES:

Full Time Faculty 71,340,598 (664,312) 53,236,703 74.6% 50,892,265 72.4%

Part Time Faculty 30,558,664 25,126,501 82.2% 25,930,852 82.0%

Full Time Staff 112,592,916 (946,141) 81,660,047 72.5% 75,368,932 70.7%

Part Time Staff 12,321,462 7,434,556 60.3% 6,796,192 63.6%

Staff Benefits 34,622,261 22,693,396 65.5% 21,552,439 64.1%

Other Employee Benefits 2,837,527 2,220,650 78.3% 1,849,837 136.0%

Services 44,958,283 1,200,000 30,012,832 66.8% 25,324,132 59.6%

ProfDev/Travel 4,058,959 2,330,632 57.4% 1,828,981 50.7%

Supplies 13,359,640 8,081,331 60.5% 6,778,100 55.5%

Monthly Charges 7,346,371 3,928,357 53.5% 2,894,993 44.9%

Utilities 9,950,092 6,871,621 69.1% 6,154,350 61.9%

Other 13,944,871 (4,924,234) 2,226,893 16.0% 2,096,381 13.2%

Non-Capital Equipment 7,603,664 4,550,866 59.9% 3,154,939 61.5%

CIP Land/Building 62,550 43,485 69.5% 0 0.0%

Capital Expenditures 301,562 172,490 57.2% 196,146 56.6%

Furniture, Fixture, Equipment 2,264,259 663,065 29.3% 151,485 7.1%

Total Expenditures 368,123,679 (5,334,687) 251,253,426 68.3% 230,970,024 65.6%

Other Changes - Debt Service Transfers 8,200,000 - 5,591,847 6,428,097

Other Changes - R&R Transfers 5,642,409 - 5,642,409 5,548,877

Total Operating Transfers 13,842,409 - 11,234,256 11,976,974

Total Expenditures & Transfers 381,966,088 (5,334,687) 262,487,682 242,946,998

TOTAL NET INCREASE IN FUND BALANCES $ (781,900) $ (4,105,297) $ 58,056,562 $ 70,505,241

LONG TERM CASH RESERVES: FORECAST

Revised Forecasted Net Increase in Fund Balance $ (4,887,197)

FY 2019 "One-Time" Cash Transactions (2,726,325)

Beginning Cash Reserves, 9/1/2018 66,670,194

Forecasted Cash Reserves, 8/31/2019 $ 59,056,672

LONG TERM CASH RESERVES AS A % OF

BUDGETED EXPENDITURES 16.0%

17

LONE STAR COLLEGE

Balance Sheet

May 31, 2019

Unaudited

GASB Memorandum Memorandum

General & Reporting Totals Totals

ASSETS Restricted Entries (*) Current Year Prior Year

Cash, cash equivalents & investments $ 148,888,471 $ 133,894,529 $ $ 282,783,000 $ 353,613,529

Accounts receivable, net 7,202,610 5,591,399 5,640,085 18,434,094 15,494,064

Prepaid and deferred expenses 1,225,306 - 1,225,306 1,439,658

Inventories, at cost - - -

Capital assets, net - - 885,221,171 885,221,171 837,781,634

TOTAL ASSETS 157,316,387 139,485,928 890,861,256 1,187,663,571 1,208,328,885

Deferred Outflows Pension & OPEB - - 17,189,226 17,189,226 18,373,377

TOTAL ASSETS AND DEFERRED OUTFLOWS $ 157,316,387 $ 139,485,928 $ 908,050,482 $ 1,204,852,797 $ 1,226,702,262


LIABILITIES:

Accounts payable $ 24,239,546 $ 568,378 $ 24,807,924 $ 7,198,069

Deferred revenues 6,350,909 3,369,324 - 9,720,233 10,691,961

Accrued compensable absences payable 10,668,604 104,079 - 10,772,683 4,486,275

Accrued interest payable - 9,360,273 - 9,360,273 9,771,840

Bonds payable - - 734,478,547 734,478,547 800,916,366

Net Pension & OPEB Liability - - 136,509,334 136,509,334 62,494,141

Assets held in custody for others - 9,216,271 - 9,216,271 11,552,153

L/T Due to Other Local Government - 16,529,129 - 16,529,129 16,490,762

TOTAL LIABILITIES 41,259,059 39,147,454 870,987,881 951,394,394 923,601,567

Deferred Inflows Pension & OPEB - - 32,089,673 32,089,673 10,662,554

TOTAL LIABILITIES AND DEFERRED INFLOWS 41,259,059 39,147,454 903,077,554 983,484,067 934,264,121

FUND BALANCES:

Unrestricted Operating (3,377,398) - - (3,377,398) 343,523

Restricted for Technology 6,120,138 - - 6,120,138 5,984,903

Restricted for Student Activity 1,685,554 - - 1,685,554 2,021,940

Unrestricted Auxiliary 2,169,654 - - 2,169,654 1,640,804

Unrestricted Tenant Related 8,193,012 - - 8,193,012 7,255,227

Restricted Operating Cash - Short Term Reserves 40,615,693 - - 40,615,693 51,302,901

Restricted Operating Cash - Long Term Reserves 60,650,675 - - 60,650,675 60,188,083

Restricted for Grants - (30,218,687) - (30,218,687) (5,428,987)

Restricted for Debt Service - 55,414,111 - 55,414,111 51,821,263

Restricted for Construction - 75,143,050 - 75,143,050 131,386,117

TOTAL FUND BALANCES 116,057,328 100,338,474 4,972,928 221,368,730 292,438,141

TOTAL LIABILITIES, DEFERRED INFLOWS AND

FUND BALANCES $ 157,316,387 $ 139,485,928 $ 908,050,482 $ 1,204,852,797 $ 1,226,702,262

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

Auxiliary

18

LONE STAR COLLEGE

Statement of Revenues and Expenditures


PROFORMA from inception to 05.31.19

Unaudited

System Office North Harris Kingwood Tomball Montgomery CyFair University Park UP SO Grand Total

ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL

REVENUES:

Revenue 11,627,913$ - - - - - - - 11,627,913

Total Revenues 11,627,913$ - - - - - - - 11,627,913

EXPENDITURES:

Buildings 8,744$ 49,733 19,712,750 17,566 6,839 796,629 10,671 20,602,931

Contracts 786,279 1,832 11,154,061 49,212 65,472 10,855 12,067,711

Equipment 577,564 5,276,720 18,813 204,779 6,077,876

Insurance Deductible/Attorney 1,504,050 25,000 1,529,050

Personnel 319,923 11,679 666378 16,561 12,905 21,946 11,365 30,084 1,090,840

Supplies 11,160 1,567 628,660 5,819 1,171 5,876 654,255

Travel 1,563 203 1,149 2 2,917

-

Total Expenditures 3,209,283$ 65,013 37,439,718 22,381 80,853 118,945 1,048,629 40,757 42,025,580

FUND BALANCE - Increase (Decrease) 8,418,630$ (65,013) (37,439,718) (22,381) (80,853) (118,945) (1,048,629) (40,757) (30,397,667)

Encumbrances - - (10,539,381) - - (63,650) (453,345) (2,500) (11,058,876)

ADJUSTED FUND BALANCE 8,418,630$ (65,013) (47,979,099) (22,381) (80,853) (182,596) (1,501,973) (43,257) (41,456,543)

19

LONE STAR COLLEGE

Balance Sheet


As of 05.31.19

Unaudited

All Locations

ASSETS

Cash & Cash Equivalents $

Accounts receivable, net 466,985

Prepaid and deferred expenses -

TOTAL ASSETS 466,985


LIABILITIES:

Accounts payable $ 89,635

Due To Others 30,775,018

TOTAL LIABILITIES 30,864,652

TOTAL FUND BALANCE (30,397,667)

TOTAL LIABILITIES AND FUND BALANCE $ 466,985

20

DEPOSITORY 2,000,000$

Operating Cash - Subtotal 2,000,000$

POOLS 36,750,471$

MONEY MARKET ACCOUNTS 1,865,222

Operating Short Term Cash ReservesSubtotal 38,615,693$

US GOVT. AGENCIES 34,234,784$

MUNICIPAL BONDS 4,767,083

US TREASURY NOTES 12,795,242

COMMERCIAL PAPER 8,853,566

Operating Long Term Cash Reserves Subtotal 60,650,675$

TOTAL 101,266,368$

OPERATING FUNDS 05/31/2019

LONE STAR COLLEGE

SUMMARY OF OPERATING FUNDS

AS OF MAY 31, 2019

OPERATING SHORT TERM CASH

OPERATING LONG TERM CASH RESERVES

21

Building and Grounds Report Board Meeting 8-1-19

Report: Construction Projects Update

The monthly construction projects update is presented for Board review.

Exhibit "ee"

CONSTRUCTION PROJECTS UPDATE As of August 1, 2019

1. LSC-Kingwood: Hurricane Harvey Recovery:

A renovation of 200,000 sf of the first floors of five of six buildings. The architect is AutoArch and design was completed August 2018. The construction firm is Anslow Bryant. Substantial completion was reached on January 6, 2019 for five of the six buildings as well as May 17, 2019 for the library. Final completion details are underway as of May 2019 and are expected to be complete by September 2019.

Substantial Completion: Spring 2019 Budget: $48,981,935

2. LSC-University Park: Student Life Renovation:

A renovation of 9,583 sf in the Commons Building Level 2, this project will support student life for the college. The architect is RdlR Architects and design was completed November 2017. The construction firm is Gadberry and they began construction February 2019.

Substantial Completion: Summer 2019 Budget: $840,000

3. LSC-North Harris: East Aldine Satellite Center:

A new 65,000 sf building, this project will support general curriculum studies and workforce instruction in the Aldine School District area; as well as an Early College program partnership with Aldine ISD. The architect is Texas IBI Group and design was completed December 2017. The construction firm is Bartlett Cocke General Contractors and construction began March 2018.

Substantial Completion: Summer 2019 Budget: $28,940,000

4. LSC-Tomball: South Entrance Drive Monument:

A new main entrance monument, sign, and landscaping, this project will support the new Tomball South Drive Entrance completed January 2018. Survey approved with TxDOT to purchase property. Appraisals being prepared.

Substantial Completion: Fall 2020 Budget: $2,650,000

5. LSC-Corporate College: Transportation Institute:

A new 16,000 sf building, this project will support the growing truck driving program. The architect is PBK Architects and design was completed September 2018. The construction firm is Tellepsen and construction began February 2019.


6. LSC-University Park: Visual Performing Arts Center:

A new 40,000 sf building, this project will support an instructional arts program. The architect is Studio Red Architects and programming began May 2018.


7. LSC-Montgomery: Student Services Building:

A new 50,000+ sf building, this project will support expanded student services capabilities. The architect is Harrison Kornberg and programming began June 2018. The construction firm is Durotech, Inc. General Contractors.


8. LSC-Kingwood: Healthcare Instructional Building: A new 50,000+ sf building, this project will support a healthcare instructional program. The architect is AutoArch and we are now in schematic design. The construction firm is Tellepsen.

Substantial Completion: Fall 2021 Budget: $27,590,000

9. LSC-Magnolia Center:

o A new 50,000+ sf building, this project will support the needs of the Magnolia community. Land was recently purchased, the architect is Harrison Kornberg and programming is beginning April 2019.


Documents

MINUTES OF THE WORKSHOP AND REGULAR … 8 01 MINUTES...IV. CLOSED SESSION: At 5:05 p.m. Dr. Smith convened the Board in closed session, in accordance with Section 551.001 et seq. of