PUBLIC HEARING 2014 - 2015 PROPOSED BUDGET

AND 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 7, 2014

5:00 p.m. Public Hearing – 2014 - 2015 Proposed Budget I. Call to Order II. Pledge of Allegiance III. Certification of the Posting of the Notice of the Public Hearing IV. Presentation of the 2014 - 2015 Proposed Budget V. Citizens Comments VI. Adjournment of Public Hearing Workshop and Regular Meeting I. Call to Order II. Certification of the Posting of the Notice of the Meeting III. Introductions, Special Guests, Recognitions IV. Workshop V. Closed Session The Board of Trustees, in accordance with Sections 551.001, et seq. of the Texas

Government Code will move into Closed Session under the following provision(s) of the ACT:

Section 551.071 – Consultation with Attorney Section 551.072 - Deliberation Regarding Real Property Section 551.073 - Deliberation Regarding Prospective Gift

Section 551.074 – Personnel Matters Section 551.076 - Deliberation Regarding Security Devices

Section 551.087 - Economic Development Negotiations VI. Reconvene Regular Meeting VII. Approval of the Minutes of the June 5, 2014 Workshop and Regular Meeting, July 1,

2014 Special Meeting and July 28, 2014 Budget Workshop

VIII. Citizens Desiring to Address the Board IX. Special Reports and Announcements

1. Chancellor

2. College Presidents

3. Vice Chancellors X. Consideration of Consent Agenda

(The purpose of the consent agenda is to allow the Board to identify and approve action items which require no additional information or discussion and for which there is unanimous approval. Trustees receive agenda materials one week in advance of the meeting to prepare for the business to be conducted.)

XI. Policy Report and Consideration

1. Consideration of Approval of the Recommended Revision of the Lone Star College Board Policy Sections I.E.I.42, 43, 44, 46 and 47 (SECOND READING) (ACTION ITEM 1)

2. Consideration of Approval of the Order Calling Trustee and Bond Election and to Appoint a Staff Agent for the Board Secretary to Perform Election Duties (ACTION ITEM 2)

XII. Financial Reports and Considerations

1. Monthly Financial Statements

2. Quarterly Financial Report

3. Consideration of Adoption of the Recommended 2014-15 Budgets (ACTION ITEM 3)

4. Consideration of Adoption of a Resolution Approving the Expansion & Remodeling

of the Facilities of the Montgomery Central Appraisal District (ACTION ITEM 4)

5. RESOLUTION AUTHORIZING THE REDEMPTION AND/OR DEFEASANCE OF CERTAIN OUTSTANDING BONDS OF LONE STAR COLLEGE SYSTEM AND AUTHORIZING THE ISSUANCE OF LONE STAR COLLEGE SYSTEM LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS SERIES 2014 (ACTION ITEM 5)

6. Consideration of Approval to Purchase Science Supplies, Equipment and

Instructional Chemicals for the System (ACTION ITEM 6) 7. Consideration of Approval to Purchase an Echocardiography Machine for the

Echocardiography Program at LSC-CyFair (ACTION ITEM 7) 8. Consideration of Approval to Purchase X-Ray Equipment and Accessories for the

MRT Program at LSC-Montgomery (ACTION ITEM 8) 9. Consideration of Approval to Purchase Workforce Equipment for the Energy and

Manufacturing Institute (EMI) at LSC-University Park (ACTION ITEM 9) 10. Consideration of Approval to Purchase Instrumentation Equipment for the Oil and

Gas and Automated Service Technician Programs at the Energy and Manufacturing Institute (EMI) at LSC-University Park (ACTION ITEM 10)

11. Consideration of Approval to Purchase Engineering Equipment for the Engineering

Technology Petroleum Program at LSC-University Park (ACTION ITEM 11) 12. Consideration of Approval to Purchase Library Materials, Supplies, Services and

Resource Sharing Membership Fees for FY 2014-15 (ACTION ITEM 12)

13. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract to Purchase a Facilities Management Services Program for LSC-North Harris and Related Satellite Centers (ACTION ITEM 13)

14. Consideration of Approval to Au thor i z e the Chancellor or D e s i g n e e to

Negotiate and Execute a Contract to Purchase Architectural Services for the LSC-East Aldine Satellite Center (Aldine) (ACTION ITEM 14)

15. Consideration of Approval to Purchase Additional Architectural Services for LSC-

University Park (ACTION ITEM 15) 16. Consideration of Approval to Purchase Additional Architectural Services for

Renovation Projects (ACTION ITEM 16) 17. Consideration of Approval of Annual Purchases of Construction and Related Services

for the System (ACTION ITEM 17)

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

and Services (ACTION ITEM 18) 19. Consideration of Approval to Renew Annual Insurance Policies for Fiscal Year 2014-

15 and Agreements for the Administration of Student Liability and Medical Insurance (ACTION ITEM 19)

20. Consideration of Approval to Purchase Printing and Mailing Services, Including

Postage, for the Star and Silver Star Newsletters (ACTION ITEM 20) 21. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and

Execute a Contract for the Purchase of System-Wide On-Demand Tele-Med Health Care Access Services for Employees (ACTION ITEM 21)

22. Consideration of Approval to Purchase Access Control Card Readers for LSC-CyFair

(ACTION ITEM 22)

XIII. Building and Grounds Report

Construction Projects Update XIV. Personnel Reports and Considerations

1 Consideration of Ratification of Appointments (ACTION ITEM 23)

2. Consideration of Acceptance of Resignations (ACTION ITEM 24) 3. Consideration of Approval of Commissioning of Peace Officers (ACTION ITEM

25) XV. Suggested Future Agenda Items XVI. Adjournment The Board of Trustees, may at any time prior to adjournment, in accordance with Sections

551.001, et. seq. of the Texas Government Code, move into Closed Session under the following provisions(s) of the ACT:

Section 551.071 - Consultation with Attorney Section 551.072 - Deliberation Regarding Real Property Section 551.073 - Deliberation Regarding Prospective Gift Section 551.074 - Personnel Matters Section 551.076 - Deliberation Regarding Security Devices Section 551.087 - Economic Development Negotiations

Certification of Posting of Notice to the August 7, 2014 Public Hearing

2014-15 Proposed Budget of the Lone Star College System

Board of Trustees I, Stephen C. Head, Chancellor of the Lone Star College System, do hereby certify that a notice of the Public Hearing was posted on Monday the 4th day of August, 2014 in a place convenient to the public in the Administration Office of the Central Services and Training Center, on all college campuses and on the system website as required by Section 551.002 et seq., Texas Government Code. Special notice of the meeting was provided to the news media as required by Section 551.001 et seq., Texas Government Code. Given under my hand this the 4th day of August, 2014.

LONE STAR COLLEGE SYSTEM

_____________________ Stephen C. Head

Chancellor

Certification of Posting of Notice to the August 7, 2014 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 4th day of August, 2014 in a place convenient to the public in the Administration Office of the Central Services and Training Center, on all college campuses and on the system website as required by Section 551.002 et seq., Texas Government Code. Special notice of the meeting was provided to the news media as required by Section 551.001 et seq., Texas Government Code. Given under my hand this the 4th day of August, 2014.

LONE STAR COLLEGE SYSTEM

_____________________ Stephen C. Head

Chancellor

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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 June 5, 2014

5:00 p.m.

PRESENT: Dr. David Holsey, Chair Mr. Bob Wolfe, Vice Chair Ms. Priscilla Kelly, Secretary Mr. David Vogt, Assistant Secretary

Ms. Linda Good Dr. Kyle Scott Dr. Ron Trowbridge ABSENT: Ms. Stephanie Marquard

Mr. Robert Adam I. CALL TO ORDER: Dr. Holsey called the workshop and regular meeting of the Board

of Trustees to order at 5:01 p.m. after determining that a quorum was present. II. PLEDGE OF ALLEGIANCE: Dr. Trowbridge led the Board and guests in reciting the

Pledge of Allegiance. III. CERTIFICATION OF THE POSTING OF THE NOTICE OF THE MEETING:

Senior vice chancellor Key confirmed that the Notice for the meeting had been properly posted. No action was required. A copy is attached as Exhibit “A”.

IV. INTRODUCTIONS, SPECIAL GUESTS AND RECOGNITIONS: None.

V. CLOSED SESSION: At 5:14 p.m. Dr. Holsey 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 Section 551.072 - Deliberation Regarding Real Property

Section 551.073 - Deliberation Regarding Prospective Gift Section 551.074 - Personnel Matters Section 551.076 - Deliberation Regarding Security Devices Section 551.087 - Economic Development Negotiations

Mr. Wolfe entered the meeting at 5:05 p.m. Mr. Vogt entered the meeting at 5:09 p.m.

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VI. RECONVENE REGULAR MEETING: Dr. Holsey reconvened the open meeting at 6:23 p.m.

VII. WORKSHOP: Mr. Ray Laughter, vice chancellor of external affairs, reported on the

Leadership North Houston Program. LSCS is a partner in this program that was started by the seven Chambers of Commerce in the area in 1995. Thirty participants from the North Houston region are chosen to participate in the nine month program to learn about leadership skills. Mr. Laughter introduced Kay Fitzsimons, director of Leadership North Houston and the LSCS Community Leadership Institute. Ms. Fitzsimons stated the goal of the program is to develop and increase knowledge of the issues in our community and to have those that are in key decision making roles in our area to be able to network, work with one another, have the opportunity to speak to those they want to find out more about and help make a positive impact and change for our community. Kelly Ray, general manager of Community Impact Newspapers and Anthony McMillan, director of library services for LSC-Kingwood gave an account of their experiences participating in Leadership North Houston. Mr. Laughter stated this is funded by participant fees and sponsors and is self-supporting. The long-term goal is to create better leaders in our community. The Leadership High School program has been created in which two juniors from every high school goes through a similar yearlong process and we know that will serves us for decades to come as they become better leaders. He indicated many prominent people within the community have gone through the Leadership North Houston and feels we really are making a difference due to this program. Dr. Trowbridge gave an update and overview of the Chancellor Search.

VIII. APPROVAL OF THE MINUTES OF THE May 1, 2014 WORKSHOP AND REGULAR MEETING: upon a motion by Ms. Kelly and a second to the motion by Dr. Trowbridge, the board approved the minutes of the May 1, 2014 Workshop and Regular Meeting. Ms. Good and Mr. Wolfe Abstained.

IX. CITIZENS DESIRING TO ADDRESS THE BOARD: Dr. John Burghduff spoke on behalf of the American Federation of Teachers about the new chancellor compensation. Mr. Josh Mutschler, a student at Lone Star College, thanked Dr. Lane and Dr. Head for their help and guidance in getting him on the right track with his program at LSCS. He is currently taking AutoCAD courses.

X. SPECIAL REPORTS AND ANNOUNCEMENTS:

1. Chancellor: Senior vice chancellor Rand Key reported that enrollment was up 7% for the summer. The fall semester is up by 14% as compared to this day last year with LSC-UP with 20% increase.

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2. College Presidents: None.

3. Vice Chancellors: None.

4. Faculty Senate Presidents: None.

XI. CONSIDERATION OF THE CONSENT AGENDA: Action Items 1, 9, and 11 were

removed from the agenda to be considered separately. Dr. Holsey proceeded with the Consent Agenda. Mr. Wolfe made a motion to approve Action Items 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, and 14. Dr. Scott seconded the motion and the Board passed the Consent Agenda. A copy is attached as Exhibit “B”.

XII. POLICY REPORT AND CONSIDERATIONS:

1. Consideration of Approval of the Recommended Revision of the Lone Star College Board Policy Sections I.E.I.42, 43, 44, 46 and 47 (FIRST READING): the board unanimously considered the recommended revision of the Lone Star College System Board Policy Section I.E.I.42, 43, 44, 46 and 47. This constitutes a first consideration with a request for approval during the August 2014 board meeting. A copy is attached as Exhibit “C”.

2. Consideration of Naming Buildings 12 and 13 at LSC-University Park in Honor of Chancellor Richard Carpenter (ACTION ITEM 1): upon a motion made Mr. Wolfe and a second by Ms. Kelly the board unanimously approves recognizing Richard Carpenter for his contribution and service as Chancellor of the Lone Star College System for seven years by naming Buildings 12 and 13 at LSC-University Park as the Richard G. Carpenter Academic Building in his honor. A copy is attached as Exhibit “D”.

XIII. CURRICULUM REPORTS AND CONSIDERATIONS:

1. Consideration of Approval of the CE Machining Master Certificate (375 Contact

Hours) for Implementation at Lone Star College – Montgomery and Lone Star College - University Park for Fall 2014 (ACTION ITEM 4): the board unanimously approves the CE Machining Master Certificate. This item was passed in the Consent Agenda. A copy is attached as Exhibit “E”.

XIV. FINANCIAL REPORTS AND CONSIDERATIONS:

1. Monthly Financial Statements: Ms. Cindy Gilliam, vice chancellor for administration and finance, presented the monthly financial statements and quarterly reports for the month ended April 30, 2014. A copy is attached as Exhibit “F”.

2. Consideration of Approval to Purchase Catering and Local Restaurant Services

(ACTION ITEM 3): the board unanimously approves the purchase of catering and

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local restaurant services for an estimated amount of $540,000 annually and a not-to-exceed amount of $2,700,000 over five years from the attached list of caterers and local restaurants. Secondly, the Board of Trustees approves the addition of vendors to the attached list based on a process as described below. This item was passed in the Consent Agenda. A copy is attached as Exhibit “G”.

3. Consideration of Approval to Purchase Office Supplies for the System (ACTION

ITEM 4): the board authorizes the purchase of office supplies from Staples Advantage, 6400 Hollister, Houston, Texas 77040, for an estimated annual cost of $500,000 and a total not-to-exceed cost of $2,500,000 over five years. This item was passed in the Consent Agenda. A copy is attached as Exhibit “H”.

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

Execute an Agreement to Purchase Employee Benefits Brokerage and Consulting Services for the System (ACTION ITEM 5): the board unanimously authorizes the Chancellor or designee to negotiate and execute an agreement to purchase employee benefits brokerage and consulting services for the System from Arthur J. Gallagher & Co. (Gallagher), 1900 West Loop South, Suite 1600, Houston, TX 77027, in the amount of $57,500 in year one and $50,000 annually in years 2 through 5, or $257,500 over the five-year contract period. This item was passed in the Consent Agenda. A copy is attached as Exhibit “I”.

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

Execute Master Service Agreements for the Purchase of General Contracting Services for the System (ACTION ITEM 6): the board unanimously authorizes the Chancellor or designee to negotiate and execute master service agreements with the recommended vendors on the attached list for the purchase of general contracting services for individual projects that cost less than $100,000. The scope of the award is for an estimated $2,000,000 per year, with a not-to-exceed amount of $10,000,000 over the five year term. This item was passed in the Consent Agenda. A copy is attached as Exhibit “J”.

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

Execute a Master Consulting Service Agreement for the Purchase of Security Systems Consulting Services for the System (ACTION ITEM 7): the board unanimously authorizes the Chancellor or designee to negotiate and execute a master consulting service agreement for the purchase of security systems consulting services for the System from TRC Engineers, Inc. 123 Technology Drive, Irvine, CA 92618, for an amount not-to-exceed $600,000 over a five year period. In addition, authorizes the Chancellor or designee to negotiate and execute the specific project scope of work agreements. This item was passed in the Consent Agenda. A copy is attached as Exhibit “K”.

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

Execute a Contract to Purchase an Academic Catalog Management Online Solution for the System (ACTION ITEM 8): the board unanimously authorizes the

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Chancellor or designee to negotiate and execute a contract to purchase an academic catalog management online solution for the System from Digital Architecture, P.O. Box 7791, Lakeland, FL 33807, in an amount not-to-exceed $250,000. This cost includes the annual support/hosting costs for five years. This item was passed in the Consent Agenda. A copy is attached as Exhibit “L”.

8. Consideration of Approval of Tax Exemption Allowances for Tax Year 2014

(ACTION ITEM 9): upon a motion made Mr. Vogt and a second by Dr. Trowbridge the board unanimously approves the following tax exemptions for the year 2014 for Harris, Montgomery and San Jacinto counties: Homestead Exemption $5,000 or 1% (whichever is greater); Over 65 Exemption $75,000 and Disability $75,000. Texas Property Tax Code Sec. 11.13 mandates that the governing body of the taxing unit must adopt exemptions. A copy is attached as Exhibit “M”.

9. Consideration of Approval to Authorize the Chancellor or Designee to Procure and to

Negotiate Consulting Services for the Board of Trustee’s Annual and Comprehensive Evaluation Pursuant to Lone Star College System Board Policy Section I B.1 – Board Governance (ACTION ITEM 10): the board unanimously approves the purchase of consulting services in providing the required Board of Trustee's annual self-evaluation pursuant to Lone Star College System Board Policy Section I B.1 - Board Governance for an amount not-to-exceed $150,000 This item was passed in the Consent Agenda. A copy is attached as Exhibit “N”.

10. Consideration of Approval to Authorize the Chancellor or his Designee to Negotiate

and Execute an Extended Contract for the Update of the Facilities Master Plan (ACTION ITEM 11): upon a motion made by Mr. Vogt and a second by Ms. Kelly the board unanimously authorizes the Chancellor or his designee to negotiate and execute an extended contract for the update of the facilities master plan previously provided by Gensler, 711 Louisiana Suite 300, Houston, TX 77003, for an amount not-to-exceed $250,000. A copy is attached as Exhibit “O”.

11. Consideration of Approval to Purchase Additional Telecommunication Services for

the System (ACTION ITEM 12): the board unanimously approves the purchase of additional telecommunication services for the System in an estimated annual amount of $403,000 for the remaining two years of the contract term from the following vendors listed: Windstream (PAETEC) 600 Willowbrook Office Park, Fairport, NY 14450 - $228,000; Consolidated Communications, 350 S. Loop 336W, Conroe, TX 77384 - $50,000; AT&T 6500 W. Loop South, Bellaire, TX 77401 - $30,000; Century Link Communications 312 Huggins St,. Humble, TX 77338 - $60,000 and the system’s planned facility growth - $35,000. This brings the total cost of these services to $2,356,000 for the five year period. This item was passed in the Consent Agenda. A copy is attached as Exhibit “P”.

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XV. BUILDING AND GROUNDS REPORTS:

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

XVI. PERSONNEL REPORTS AND CONSIDERATIONS:

1. Consideration of Ratification of Appointments (ACTION ITEM 13): the Board unanimously ratified the appointments with the added correction. This item was passed in the Consent Agenda. A copy is attached as Exhibit “R”.

2. Consideration of Acceptance of Resignations (ACTION ITEM 14): the Board

unanimously accepted the resignations as presented. This item was passed in the Consent Agenda. A copy is attached as Exhibit “S”.

XVII. SUGGESTED FUTURE AGENDA ITEMS: None.

Dr. Trowbridge spoke about his experience at his first graduation at Lone Star College- North Harris and the powerful stories and struggles of many of the graduates.

XVIII. ADJOURNMENT: There being no further business, the meeting was adjourned at 6:56

p.m.

ATTEST: ______________________________ ______________________________ Board of Trustees, Chair Board of Trustees, Secretary

MINUTES OF THE SPECIAL 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

July 1, 2014 4:00 p.m.

PRESENT: Dr. David Holsey, Chair Mr. Bob Wolfe, Vice Chair Ms. Priscilla Kelly, Secretary Mr. David Vogt, Assistant Secretary

Ms. Stephanie Marquard Dr. Kyle Scott Dr. Ron Trowbridge ABSENT: Ms. Linda Good

Mr. Robert Adam I. CALL TO ORDER: Dr. Holsey called the special meeting of the Board of Trustees to

order at 4:00 p.m. after determining that a quorum was present. II. PLEDGE OF ALLEGIANCE: Ms. Kelly led the Board and guests in reciting the

Pledge of Allegiance. III. CERTIFICATION OF THE POSTING OF THE NOTICE OF THE MEETING:

Karen Lovejoy, Program Coordinator for the Chancellor’s Office 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 4:00 p.m. Dr. Holsey 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

Section 551.074 - Personnel Matters

V. RECONVENE REGULAR MEETING: Dr. Holsey reconvened the open meeting at 4:15 p.m.

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VI. APPROVAL OF THE MINUTES OF THE JUNE 10, 2014 SPECIAL MEETING: upon a motion by Dr. Trowbridge and a second to the motion by Mr. Vogt, the board approved the minutes of the June 10, 2014 Special Meeting.

VII. CONSIDERATION OF APPOINTMENT OF THE NEXT CHANCELLOR OF THE LONE STAR COLLEGE SYSTEM (ACTION ITEM 1): Upon a motion made by Ms. Marquard and a second to the motion by Ms. Kelly, the board unanimously appointed Dr. Stephen C. Head to be the next Chancellor of the Lone Star College System. A copy is attached as Exhibit “B.”

VI. ADJOURNMENT: There being no further business, Dr. Holsey adjourned the meeting

at 4:20 p.m. ATTEST: ______________________________ ____________________________ Board of Trustees, Chair Board of Trustees, Secretary

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MINUTES OF THE BUDGET WORKSHOP MEETING OF THE BOARD OF TRUSTEES OF THE

LONE STAR COLLEGE SYSTEM CENTRAL SERVICES AND TRAINING CENTER

TRAINING AND DEVELOPMENT CENTER BOARD ROOM 5000 RESEARCH FOREST DRIVE THE WOODLANDS, TEXAS 77381

July 28, 2014 12:00 p.m.

PRESENT: Dr. David Holsey, Chair Ms. Priscilla Kelly, Secretary

Mr. David Vogt, Assistant Secretary Dr. Kyle Scott Ms. Linda S. Good

Ms. Stephanie Marquard ABSENT: Mr. Bob Wolfe, Vice Chair Mr. Ron Trowbridge

Mr. Robert Adam I. CALL TO ORDER: Dr. Holsey called the budget workshop meeting of the Board of

Trustees to order at 12:10 p.m. after determining a quorum was present. II. PLEDGE OF ALLEGIANCE: Ms. Marquard led the Board and guests in reciting the

Pledge of Allegiance. III. CERTIFICATION OF THE POSTING OF THE NOTICE OF THE MEETING:

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

IV. REVIEW OF RECOMMENDED 2014-2015 BUDGET: Chancellor Carpenter led a review of the proposed budget for 2014-2015. The presentation included a summary report on accountability measures, estimates revenues, operational needs and a summary of the recommended budget.

The recommended budget is $331,930,000.

V. DISCUSSION:

VI. ADJOURNMENT: Dr. Holsey adjourned the budget workshop at 2:17 p.m.

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ATTEST: ________________________________ ___________________________________ Board of Trustees, Chair Board of Trustees, Secretary

Consideration of Consent Agenda Board Meeting 8-7-14 Consent Agenda:

A roll call of individual action items will determine the consent agenda. If a trustee has a question or plans to cast a negative vote regarding a specific recommendation, then the trustee/trustees need to acknowledge their intention to the Chair by show of hand during the roll call: this action item will be considered in the regular order of business as an individual action item. Those action items that the trustees plan to approve without further question or discussion will be placed on the consent agenda during roll call of individual action items. Upon the creation of the consent agenda, a motion, a second to the motion and unanimous approval of the Board of Trustees is needed to approve the action items. Upon approval of the consent agenda, the Board of Trustees will proceed with the remainder of the agenda.

Rationale: The consent agenda format is an organization process for meetings that allows the

governing board to focus their time and attention on action items that require more elaboration, information, and/or discussion. The intent of the consent agenda is to support efficiency and effectiveness of the meeting.

Tally of Action Items: Chancellor Board Consent Recommended Separate Agenda Separate Action Action

# 1 Approve Rev. to LSC Board Policy I.E.I.42,43,44,46,47 ______ ______ ______ # 2Approve Order Calling Trustee/BondElect/Appt/Staff/Agt ______ ______ ______ # 3 Adopt 2014-15 Budgets ______ ______ ______ # 4 Approve Resolution for Expansion MCAD Off/Complex ______ ______ ______ # 5 Authorize GO Refunding Bonds Series 2014 ______ ______ ______ # 6 Approve Purchase Science/Supp/Instruct/Chem/System ______ ______ ______ # 7 Approve Purchase Echocardio/Mach/LSC-CF ______ ______ ______ # 8 Approve Purchase X-Ray Equip/LSC-MC ______ ______ ______ # 9 Approve Purch/Workforce/Equip/EMI/LSC-UP ______ ______ ______ #10 Approve Purch/Instrumentation/Equip/EMI/LSC-UP ______ ______ ______ #11 Approve Purch/Engineering/Equip/Tech/Petro/LSC-UP ______ ______ ______ #12 Approve Purchase Library Materials/Svs FY 14-15 ______ ______ ______ #13 Authorize Chan/Neg/Exec/Purch/Facil/Mgt/Svs/LSC-NH ______ ______ ______ #14 Authorize Chan/Neg/Exec/Purch/Arch/Svs/LSC-Aldine ______ ______ ______ #15 Approve Annual/Purch/Add/Architect/Svs/LSC-UP ______ ______ ______ #16 Approve Annual/Purch/Add/Architect/Renov/Projects ______ ______ ______ #17 Approve Annual/Purchases/Constr/Related/Svs/System ______ ______ ______ #18 Approve Ann/Purch/Tech/Hardware/Software/Svcs/Sys ______ ______ ______ #19 Approve Renew Annual Ins/Pol/Stu/Liab/Med/Ins ______ ______ ______ #20 Approve Purch/Print/Mail/Svcs/Star/SilverStar/News ______ ______ ______ #21 Authorize Chan/Neg/Exec Purch of Tele-Health Svs. ______ ______ ______ #22 Approve Purchase of Access Ctrl Card Readers LSC-CF ______ ______ ______ #23 Ratify Appointments ______ ______ ______ #24 Accept Resignations ______ ______ ______ #25 Approve Commissioning of Peace Officers ______ ______ ______

Policy Report and Consideration No. 1 (ACTION ITEM 1) Board Meeting 8-7-14 Request: Consideration of Approval of the Recommended Revision of the Lone

Star College Board Policy Sections I.E.I.42, 43, 44, 46 and 47 (Second Reading).

Chancellor’s Recommendation:

That the Board of Trustees approves the recommended revisions of Lone Star College System Board Policy Sections I.E.I.42, 43, 44, 46 and 47.

Rationale: This policy revision clarifies the process and scope of (i) citizen

participation during Board of Trustee Meetings, (ii) the process for citizen registration to participate prior to the Board Meetings, (iii) the permitted conduct of citizens during the Board Meetings and (iv) Administrative Channels/Board of Trustee requirements in resolving complaints and concerns.

Fiscal Impact:

None.

Staff Resource: Steve Head

Brian S. Nelson 832-813-6515 832-813-6655

August 2014 Board of Trustee Meeting Second Reading

Page 1 of 3

I.E. Board Meetings

I.E.1. MEETINGS I.E.1.42 - Scope of Participation Citizen participation will be permitted prior to the Board Meeting Executive Session and for those individuals who have registered and requested to speak about a specific agenda item. At all other times during Board meetings, the audience shall not enter into discussion or debate on matters being considered by the Board. No presentation before the Board shall exceed five (5) minutes. The maximum time for all citizen participation shall not exceed 30 minutes. Delegations of more than three (3) persons in speaking about a given agenda item shall appoint one person to present their views before the Board.

I.E.1.43 - Citizen Participation Board meetings are held to transact the business of the System. Citizens shall be allowed to address the Board by registering and requesting the right to speak about a specific agenda item by (i) registering via email and completing the attached form at citizenparticipation@lonestar.edu twenty-four (24) hours before the board meeting, or (ii) registering in person using the form provided no later that 5 minutes before the Board Meeting is called to order.

I.E.1.44 - Disruption The following actions shall not be permitted at a Board Meeting: Personal attacks regarding a named person or of a particular position, name calling, profanity, rude demeaning or slanderous remarks, loud or raucous behavior, obscene gestures, accusation of criminal behavior, use of signs and placards and other conduct that is disruptive. Additionally, pursuant to Chapter 42 of the Texas Penal Code, it is a Class B misdemeanor criminal offense for a person, with intent to prevent or disrupt a lawful meeting, to substantially obstruct or interfere with the meeting by physical action or verbal utterance. I.E.1.46 - Complaints and Concerns All Complaints and concerns that can be addressed and/or resolved through proper administrative channels shall be directed as follows: 1. E m p l o y e e c o m p l a i n t s – “ G r i e v a n c e ” S e c t i o n , C h a p t e r I V - H u m a n Resources

August 2014 Board of Trustee Meeting Second Reading

Page 2 of 3

2. Termination of employment – “Employee Rights and Privileges” Section, Chapter IV - Human Resources

3. Student complaints – “Student Welfare and Rights” Section,

Chapter VI - Students 4. Student discipline and penalties – “Student Responsibilities” Section,

Chapter VI - Students 5. Student Organizations – “Student Welfare and Rights” Section,

Chapter VI - Students 6. Employee complaints - Unlawful Discrimination and Prohibited Harassment,

Chapter IV- Human Resources Complaints or concerns that do not fall within Nos. 1-6 of this Section I.E.I.46 must be submitted in writing a t citizenparticipation@lonestar.edu with a copy to Office_of_General_Counsel@lonestar.edu w h i c h s h a l l b e h a n d l e d a s f o l l o w s :

1. Complaints that are not subject to Nos. 1-6 listed above shall be submitted to the Board by the Board Liaison so that each complaint may be considered in accordance with Texas law.

2. The Board is not required to respond to the complaints but only to consider them.

3. Board Members may not discuss the complaints in public or otherwise, except as provided by the exceptions to the Texas Open Meetings Act and in Closed Session. 4. Procedures may be developed in implementing the requirements of this Policy Section.

I.E.1.47 - Board’s Response Texas Government Code 551.042 prohibits the Board from responding to any subjects raised that are not on the agenda, except by making one or more of the following responses: 1. stating a known fact relevant to the subject; and/or 2. reciting a specific relevant policy manual section. Furthermore, any deliberation or decision about the non-agenda subject shall be limited to a proposal to place the subject on the agenda for a subsequent meeting.

August 2014 Board of Trustee Meeting Second Reading

Page 3 of 3

LSCS Policy Manual Section adopted by the Board of Trustees on __________, 2014

L o n e S t a r C o l l e g e S y s t e m B o a r d o f T r u s t e e M e e t i n g

Citizen Registration To Address the Board Regarding Specific Agenda

Items    Date:

 Board Meeting Date:

 Name:

 Phone:

 Email Address:

 Organization:

   

Agenda Item #: Subject:

For: Against: Testimony is Written: Oral: Or Both:

Written Testimony:

 Signed: __________________________ Dated: ___________________________

Financial Report and Consideration No. 2 (ACTION ITEM 2) Board Meeting 8-7-14 Request: Consideration of Approval of the Order Calling Trustee and Bond Election

and to Appoint a Staff Agent for the Board Secretary to Perform the Election Duties

Chancellor’s Recommendation:

That the Board of Trustees approves the order calling the Trustee and Bond election on November 4, 2014. The Trustee election is for District No. 3, District No. 4 and District No. 9 for a six year term on the Board of Trustees of the Lone Star College System. The Bond election is to authorize the issuance of bonds for the construction and equipment of school buildings and related infrastructure in the System and the purchase of the necessary sites.

Rationale: By United States District Court Consent Decree entered October 11, 2013,

and in accordance with Chapter 130 of the Texas Education Code, an election of trustees for single member districts in Districts 3, 4 and 9 for a six year term is ordered. The Board has determined that the priority educational needs of the System require the construction and rehabilitation of certain facilities and that these needs require the consideration of the issuance of bonds by the voters. The Board is also requested to appoint Helen Clougherty as the agent for Board Secretary, Ms. Priscilla Kelly, to perform the election duties and to keep the office hours required by Section 31.123 of the Election Code. A notice will be posted in accordance with the Election law requirements.

Fiscal Impact: Montgomery County Elections Services, San Jacinto County Election

Services, and Harris County Clerk Elections Division shall conduct the election for the System at the designated county and District 3, 4 and 9 polling sites for early voting and on election day. The estimated cost is approximately $500,000 based on previous election costs. Funds are available in the approved 2013-2014 operating budget. Funds for the 2014-2015 fiscal year will be included in the proposed 2014-2015 operating budget.

Staff Resource: Helen Clougherty 832-813-6514 Brian Nelson 832-813-6655

ORDER CALLING SCHOOL TRUSTEE AND BOND ELECTION THE STATE OF TEXAS § COUNTIES OF HARRIS, MONTGOMERY AND SAN JACINTO § LONE STAR COLLEGE SYSTEM § WHEREAS, under the laws governing the Lone Star College System (“System”), an election for Trustees to Districts Nos. 3, 4 and 9, respectively, on the Board of Trustees of the Lone Star College System, shall be held on November 4, 2014, under the direction of the Chancellor of the System or his designee; AND WHEREAS, the Board of Trustees deems it necessary to call a Bond election. NOW, THEREFORE, be it ordered by the Board of Trustees of the Lone Star College System that: SECTION 1: An election shall be held within the System on November 4, 2014, between the hours of 7:00 a.m. and 7:00 p.m. for the purpose of electing Trustees to fill Positions for District Nos. 3, 4 and 9, respectively, of the Board of the System and authorizing a Bond election. The Chairman and Secretary of the Board are authorized and directed to give notice of such election in the manner and for the time required by law. All of the duly qualified resident electors of the System shall be qualified to vote in said election. SECTION 2: Any qualified voter desiring election for a position on such Board shall file with Ms. Helen Clougherty as the agent for Ms. Priscilla Kelly, the Secretary of the Board of Trustees, between July 21, 2014 and August 18, 2014 a completed application and filing fee of two-hundred dollars ($200.00) or a petition with the signatures of two-hundred (200) registered voters of the Lone Star College System District in which he or she is a candidate to have his or her name placed on the official ballot and the District number on such Board for which he or she desires to become a candidate. Candidates must be residents of Districts 3, 4 or 9 in which they intend to run. No candidate shall be eligible to have his or her name placed on the official ballot under more than one position to be filled at such election. All candidates for Trustee in such election shall be voted upon and elected separately for positions on said Board, and all candidates shall be designated on the official ballot according to the number of such position to which they may seek election. No person shall have a vote counted for him or her as a write-in candidate unless that person has filed a written declaration of write-in candidacy with Helen Clougherty, Special Assistant to the Chancellor, by 5:00 p.m. on August 18, 2014 at the Lone Star College System District Services and Training Center. In the event that there is only one candidate for election to each position at the close of the declaration of write-in candidacy deadline at 5:00 p.m. on August 18, 2014, Ms. Priscilla Kelly, Board of Trustees Secretary, shall certify in writing that all candidates are unopposed for election. The certification shall be delivered to the Board of Trustees as soon as possible and the Board, in accordance with Texas Open Meeting requirements, shall declare each unopposed candidate elected to office. SECTION 3: At said election the following PROPOSITION shall be submitted in accordance with law:

PROPOSITION

SHALL THE BOARD OF TRUSTEES OF LONE STAR COLLEGE SYSTEM, COMPRISED OF LONE STAR COLLEGE-CYFAIR, LONE STAR COLLEGE-KINGWOOD, LONE STAR COLLEGE-MONTGOMERY, LONE STAR COLLEGE-NORTH HARRIS, LONE STAR COLLEGE-TOMBALL AND LONE STAR COLLEGE-UNIVERSITY PARK, BE AUTHORIZED TO ISSUE AND SELL AT ANY PRICE OR PRICES THE BONDS OF THE DISTRICT IN THE AMOUNT OF TBD FOR THE CONSTRUCTION AND EQUIPMENT OF SCHOOL BUILDINGS IN THE SYSTEM AND THE PURCHASE OF THE NECESSARY

2

SITES THEREFORE, WHICH BONDS MAY BE ISSUED IN VARIOUS ISSUES OR SERIES, SHALL MATURE SERIALLY OR OTHERWISE NOT MORE THAN 40 YEARS FROM THEIR DATE, AND SHALL BEAR INTEREST AT SUCH RATE OR RATES, NOT TO EXCEED THE MAXIMUM RATE NOW OR HEREAFTER AUTHORIZED BY LAW, AS SHALL BE DETERMINED BY THE BOARD OF TRUSTEES OF THE SYSTEM WITHIN THE DISCRETION OF THE BOARD AT THE TIME OF ISSUANCE; AND SHALL THE BOARD OF TRUSTEES BE AUTHORIZED TO PLEDGE, SAID BONDS TO BE ISSUED UNDER THE CONSTITUTION AND LAWS OF THE STATE OF TEXAS INCLUDING THE TEXAS EDUCATION CODE?

Section 4: The official ballot shall have printed on it:

Official Ballot Lone Star College System

Trustees and Bond Election

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

PROPOSITION

[ ] FOR THE ISSUANCE OF SCHOOL BUILDING BONDS FOR THE LONE STAR COLLEGE SYSTEM COMPRISED OF LONE STAR COLLEGE-NORTH HARRIS, LONE STAR COLLEGE-KINGWOOD, LONE STAR COLLEGE-TOMBALL, LONE STAR COLLEGE-MONTGOMERY, LONE STAR COLLEGE-CYFAIR AND LONE STAR COLLEGE-UNIVERSITY PARK FOR THE CONSTRUCTION, ACQUISITION AND EQUIPMENT OF SCHOOL BUILDINGS IN THE SYSTEM, SCHOOL SITES INCLUDING INSTRUCTIONAL FACILITIES; STUDENT SERVICES FACILITIES; ACADEMIC SUPPORT FACILITIES; CAMPUS SUPPORT FACILITIES; TRAFFIC INFRASTRUCTURE; SAFETY AND SECURITY INFRASTRUCTURE; PLANT SYSTEM REPLACEMENTS; AND TECHNOLOGY INFRASTRUCTURE.

[ ] AGAINST At such election each qualified voter shall not vote for more than one (1) candidate for each position and shall vote “FOR” or “AGAINST” the aforesaid PROPOSITION. The candidates shall be elected by plurality vote with the candidate receiving the most number of votes in the respective position being declared the winner. The results of the election shall be canvassed by the Board on November 11, 2014 at 5:00 p.m., in the Board Room of the Lone Star College System District Services and Training Center, 5000 Research Forest Drive, The Woodlands, Texas.

Montgomery County Elections Services, San Jacinto County Election Services, and Harris County Elections shall conduct the Trustee and Bond elections for the System at the designated county and District 3, 4 and 9 polling sites for early voting and on Election Day;.

3

Section 5: The Bond election shall be held at the following election precincts in Harris County, Montgomery County and San Jacinto County and within the boundaries and limits of Districts 3, 4 and 9 within Harris County for the Trustee election. The election precincts established shall be designated by numbers, and the boundaries of the election precincts shall be those respectively designated and numbered precincts, or parts of numbered precincts, lying within the boundaries of Districts of 3,4 and 9 within the System, which have been duly described, designated and established by order of the Harris County Commissioners Court, Montgomery County Commissioners Court and San Jacinto County Commissioners Court. The polling places are listed on Exhibit A; --these polling sites are subject to change by decision of the respective county election administrator and will updated in this Order as the new sites are identified: Section 6. Early voting by personal appearance shall begin on October 20, 2014 and continue through October 31, 2014 as listed on Exhibit B.: Montgomery County registered voters may early vote at any of the Montgomery County early voting locations for the Bond election. Harris County registered voters may early vote at any of the Harris County early voting locations for both the Trustee (if registered to vote in Districts 3, 4 or 9) and Bond elections. San Jacinto County registered voters may early vote at any of the San Jacinto County early voting locations for the Bond election. The Early Voting Clerk for the election in Montgomery County, hereby designated to be Suzie Harvey, Montgomery County Elections Administrator, 9159 Airport Road, Conroe, TX 77303 will process, mail and tabulate the early ballots by mail for Montgomery County.

The Early Voting Clerk for the election in Harris County, hereby designated to be Stan Stanart, Harris County Clerk, P.O. Box 1525, Houston, TX 77251-1525 will process, mail and tabulate the early ballots by mail for Harris County. The Early Voting Clerk for the election in San Jacinto County, hereby designated to be Sherryl Evans, San Jacinto County Elections Administrator, 51 East Pine Avenue, Room A1, Coldspring, TX 77331 will process, mail and tabulate the early ballots by mail for San Jacinto County. Section 7: The voting at each election site shall be by voting machines duly adopted by the Commissioners Court of Harris County, Montgomery County and San Jacinto County utilizing a ballot method approved for use in elections held in each County. Voters in Harris County in Districts 3, 4 and 9 shall use the County’s electronic voting system to vote for a candidate for their respective Trustee position and to vote for or against the Proposition. Other voters in Harris County shall use the County’s electronic voting system to vote for or against the Proposition.Voters in Montgomery County and San Jacinto County shall use the respective County’s electronic voting system to vote for or against the Proposition. Voters in Harris County and Montgomery County will vote by operating eSlate’s Rotary Select to highlight the name of the candidate for whom the voter desires to vote and also to select ”FOR” or “AGAINST” the proposition. The voter will push the ENTER button to register their vote. Voters in San Jacinto County will vote by operating Election Systems & Software, Inc. iVotronic Touch Screen to highlight the name of the candidate for who the voter desires to vote and also to select “FOR” or “AGAINST” the proposition. The voter will press the small “vote” button at the very top of the iVotronic to cast the vote. Section 8: This Order shall constitute the election order for the call of the election and the same or a substantial copy thereof shall constitute the notice of such election; and the Secretary of the Board is ordered to cause notice of the election to be given as required by law. Immediately after the election, the officers holding the election shall convey returns of the results to the Board of the System. The Board shall canvass such returns, declare the results of such election, and issue certificates of election to the persons shown by such returns to be elected to each of the three (3) named positions.

4

Notice of such election shall be given by publishing a substantial copy of this election order, in English, Spanish, Vietnamese and Chinese, one time, not earlier than the thirtieth day nor later than the tenth day prior to the date set for the election, in a newspaper published in the District, and by posting a copy of this order on the bulletin board used for posting notices of Board of Trustees meetings and the System’s web page, not later than the 21st day prior to the date set for the election. Said election shall be held in accordance with the Texas Election Code, except as modified by the Texas Education Code and the Federal Voting Rights Act of 1965, as amended. It is hereby officially found and determined that notice of the meeting at which this order is adopted was given as required by the Texas Open Meetings Act, and that such meeting has been open to the public at all times when this order was discussed and acted on. PASSED AND APPROVED on August 7, 2014.

Chair, Board of Trustees LONE STAR COLLEGE SYSTEM ATTEST: Secretary, Board of Trustees LONE STAR COLLEGE SYSTEM (SEAL)

EXHIBIT A LSCS Election

Precincts in Montgomery

County

All or Parts of Montgomery

County Precincts

Montgomery County Polling Places Only registered voters within these jurisdictions are eligible to vote

MC-1 1 (Voting in 23) Cargill Education Support Center, 204 W Rogers, Willis 77378 MC-2 2 (Voting in 10) Washington Jr. High School, 507 Dr Martin L. King, Jr. Place N, Conroe 77301 MC-3 3 The Woodlands High School 9th Grade Campus, 10010 Branch Crossing Dr, The

Woodlands 77382 MC-4 4 Copperwood Apartment Bldg, 4407 S Panther Creek Dr, The Woodlands 77381 MC-5 6 Deretchin Elementary School, 11000 Merit Oaks Drive, The Woodlands 77382 MC-6 7 New Caney Special Education Department, 20387 FM 1485 W, New Caney 77357 MC-7 8 (Voting in 17) First Baptist Church of Groceville, 19256 FM 1484, Conroe 77306 MC-8 10 Washington Jr. High School, 507 Dr Martin L. King, Jr. Place N, Conroe 77301 MC-9 11 Lake Conroe Forest Community Building, 610 Navajo, Montgomery 77316 MC-10 12 Security Community Building 12, 18760 Hwy 105 E, Cleveland 77328 MC-11 13 Decker Prairie Community Building, 32434 Decker Prairie Rd, Magnolia 77355 MC-12 14 Crippen Elementary School, 18690 Cumberland Blvd, Porter 77365 MC-13 15 Cornerstone Church, 100 Mosswood Dr., Conroe 77302 MC-14 16 Splendora ISD Instructional Support Services, 26175 FM2090, Splendora 77372 MC-15 17 First Baptist Church of Groceville, 19256 FM 1484, Conroe 77306 MC-16 18 Magnolia Volunteer Fire Department #181, 182 Buddy Riley Blvd, Magnolia 77354 MC-17 20 Travis Intermediate School, 1100 N Thompson, Conroe 77301 MC-18 21 Conroe High School, Visitors Side Field House, 3200 W Davis, Conroe 77304 MC-19 22 Lake Conroe Hills Community Building, 13319 Lake Breeze, Willis 77318 MC-20 23 Cargill Education Support Center, 204 W Rogers, Willis 77378 MC-21 24 Oak Ridge Senior High School, 27330 Oak Ridge School Rd, Oak Ridge N 77385 MC-22 25 God’s Gathering Place, 13850 FM 1314, Conroe 77302 MC-23 26 East County Courthouse Annex, 21130 Hwy 59 S, New Caney 77357 MC-24 27 Rivershire Club House, 206 Scarborough Dr., Conroe 77304 MC-25 28 Decker Prairie Elem. School,27427 Decker Prairie Rosehill Rd,Magnolia 77355 MC-26 29 W Montgomery County Community Development Center, 31355 Friendship Dr., Magnolia

77355 MC-27 30 Magnolia High School, 14250 FM 1488, Magnolia 77354 MC-28 31 Shenandoah Municipal Complex, 29955 I-45 North, Shenandoah 77381 MC-29 32 Wilkerson Intermediate School, 12312 Sawmill Rd, The Woodlands 77380 MC-30 33 South County Community Building, 2235 Lake Robbins Dr, The Woodlands 77380 MC-31 34 Needham Fire Department Station 64., 15341 Lake Lamond Rd, Conroe 77384 MC-32 35 Robinson Road Community Bldg., 27434 Robinson Rd, Oak Ridge 77385 MC-33 36 Bennette Estates Fire Station, 15038 Calhoun Rd, Conroe 77302 MC-34 37 Friendship United Methodist Church, 22388 Ford Rd, Porter 77365 MC-35 39 Lone Star Elementary School, 16600 FM 2854, Montgomery 77316 MC-36 40 Cryar Intermediate School, 2375 Montgomery Park Blvd., Conroe 77304 MC-37 41 Splendora Jr. High School, 23411 FM 2090 , Splendora 77372 MC-38 42 Moorhead Junior High School, 13475 FM1485, Conroe 77306 MC-39 43 Panorama City Hall, 99 Hiwon Dr, Panorama 77304 MC-40 44 Lone Star Convention Center - Yellow Rose Room, 9055 FM 1484, Conroe 77303 MC-41 45 Timber Lakes/Timber Ridge Fire Station, 3434 Royal Oaks Dr, Spring 77380 MC-42 46 Sue Broadway Elementary School, 2855 Spring Trails Bend, Spring 77386 MC-43 47 South Montgomery County Fire Station #2, 3355 Rayford Rd, Spring 77386 MC-44 48 Sally K Ride Elementary School, 4920 W Panther Creek Dr, The Woodlands 77381 MC-45 49 David Elementary School, 5301 Shadowbend Place, The Woodlands 77381 MC-46 50 Far Hills Utility District Building, 10320 Cude Cemetery Road, Willis 77318 MC-47 51 Central Library, 104 I-45 North, Conroe 77301 MC-48 52 New Caney ISD Annex, 21026 Loop 494, New Caney 77357 MC-49 53 Woodbranch City Hall, 58 Woodbranch Drive,, New Caney 77357 MC-50 54 Peach Creek Baptist Church, 25963 FM 1485 E, New Caney 77357 MC-51 55 Austin Elementary School, 14796 Highway 105 East, Conroe 77306 MC-52 56 Montgomery County Hospital District EMS Station 20,250 Harper Landing Blvd, The

Woodlands 77385

*3 = District 3 *4 = District 4 *9 = District 9

MC-53 57 Stow Away Marina Café, 13988 Calvary Rd, Willis 77318 MC-54 58 Lone Star College System, 5000 Research Forest Drive, The Woodlands 77381 MC-55 59 Powell Elementary School, 7332 Cochrans Crossing Drive, The Woodlands 77381 MC-56 60 Montgomery County Juvenile Facility, 200 Academy Drive, Conroe 77301 MC-57 61 Community Christian Church, 10801 Falconwing Drive, The Woodlands 77381 MC-58 62 Collins Intermediate School, 6020 Shadowbend Place, The Woodlands 77381 MC-59 64 Whispering Pines Baptist Church, 15200 FM 1485, Conroe 77306 MC-60 65 J L Lyon Elementary School, 27035 Nichols Sawmill Rd, Magnolia 77355 MC-61 66 Outback, 30405 Dobbin Huffsmith Road, Magnolia 77354 MC-62 67 Lamar Elementary School, 1300 Many Pines Rd, The Woodlands 77380 MC-63 68 Knights of Columbus Hall, 29327 S. Plum Creek Drive, Spring 77386 MC-64 69 Barbara Bush Elementary School, 7420 Crownridge Drive, The Woodlands 77382 MC-65 70 Bear Branch Recreation Center, 5310 Research Forest Drive, The Woodlands 77381 MC-66 71 Buckalew Elementary School, 4909 W Alden Bridge, The Woodlands 77381 MC-67 73 Conroe Public Works Service Center, 401 Sgt. Ed Holcomb Blvd S, Conroe 77304 MC-68 74 Smith Elementary, 28747 Hardin Store Road, Magnolia 77354 MC-69 75 Windsor Hills HOA Club House, One Windsor Hill Circle, The Woodlands 77384 MC-70 76 Westwood Landowners Association Club House, 406 Mackintosh Drive., Magnolia 77354 MC-71 77 April Sound Church, 67 ½ April Wind South, Montgomery 77356 MC-72 78 Galatas Elementary School, 9001 Cochrans Crossing Drive, The Woodlands 77381 MC-73 79 Glen Loch Elementary School, 27505 Glen Loch Diver, The Woodlands 77381 MC-74 80 Imperial Oaks Neighborhood Center, 33120 Imperial Oaks Blvd., Spring 77386 MC-75 81 Mitchell Intermediate School, 6800 Alden Bridge, The Woodlands 77382 MC-76 82 Kingwood College Arts Building, 500 Royston Drive, Kingwood 77339 MC-77 83 Lifestyle Community Church, 16755 Highway 105 East, Conroe 77303 MC-78 84 South Montgomery Fire Station # 1, 335 Volunteer Ln @ Budde, Spring 77380 MC-79 85 Northridge Baptist Church, 10681 FM 1484, Conroe 77303 MC-80 86 Living Branch Church, 13229 Highway 105 West, Conroe 77304

LSCS Election Precincts in Harris County

All or Parts of Harris County Precincts

Harris County Polling Places Only registered voters within these jurisdictions are eligible to vote

HC-1 111(*9), 124(*9), 734(*9)

Ault Elementary School, 21010 Maple Village Drive, Cypress 77429

HC-10 370(*9), 768(*9), 828(*9)

Royce Black Elementary School, 14155 Grant Road, Cypress 77429

HC-11 442(*9), 479, 602, 691, 805

Moore Elementary School, 13734 Lakewood Forest Drive, Houston 77070

HC-12 82(*9), 112(*9), 601(*9), 668(*9), 1025(*9), 1026

Memorial Chase Homeowner’s Assn Clubhouse, 9411 Landry Blvd., Spring 77379

HC-13 513, 623, 648(*9)

Yeager Elementary School, 13615 Champion Forest Drive, Houston 77069

HC-14 477(*9), 514(*9), 624(*9), 783(*9), 853(*9)

Spring Creek Oaks Clubhouse One, 17111 Misty Creek, Spring 77379

HC-15 246(*9), 500(*9), 633

Haude Elementary School, 3111 Louetta Road, Spring 77388

HC-16 6, 399, 888 Hirsch Elementary School, 2633 Trailing Vine Road, Spring 77373 HC-17 300(*9), 481,

688(*9) Millsap Elementary School, 12424 Huffmeister Road, Cypress 77429

HC-18 480, 640, 713, 979, 980, 1021, 1022

Adam Elementary School, 11303 Honeygrove Lane, Houston 77065

HC-19 519, 641 Harris County Library-Northwest Branch, 11355 Regency Green Dr., Cypress 77429

*3 = District 3 *4 = District 4 *9 = District 9

HC-20 478 Hancock Elementary School, 13801 Schroeder Road, Houston 77070 HC-21 125, 823 Bleyl Middle School, 10800 Mills Road, Houston 77070 HC-22 451, 515, 669 Church of Christ in Champions, 13902 Cutten Road., Houston 77069 HC-23 466, 615,

631(*9) HC Public Library Barbara Bush Branch, 6817 Cypresswood Drive, Spring 77379

HC-24 464(*9), 465, 874(*9)

Ponderosa Elementary School, 17202 Butte Creek Road, Houston 77090

HC-25 550, 997 Abiding Word Lutheran Church School, 17123 Red Oak Road Drive, Houston 77090 HC-26 225(*3),

518(*3), 934(*3) Emmott Elementary School, 11750 Steepleway Blvd., Houston 77065

HC-27 548 Campbell Middle School, 11415 Bobcat Road, Houston 77064 HC-28 671(*3), 759(*3) Winchester Swim and Tennis Center, 9607 Rio Grande Drive, Houston 77064 HC-29 244, 597 Wilbern Elementary School, 10811 Goodspring Drive, Houston 77064 HC-3 551(*9),

880(*9), 998(*9) Hassler Elementary School, 9325 Lochlea Ridge Drive, Spring 77379

HC-30 609, 753 Reed Elementary School, 8700 Tami Renee Lane, Houston 77040 HC-31 516, 841 Klenk Elementary School, 6111 Bourgeois Road, Houston 77064 HC-32 613(*4), 873,

1012(*4) 1013(*4)

Iglesia Bautista Libre, 10331 Veterans Memorial Drive, Houston 77040

HC-33 113, 592 Kaiser Elementary School, 13430 Bammel North HoustonRoad, Houston 77066 HC-34 468(*4), 978 Northcliff Manor Community Center, 12026 West Marsham Circle, Houston 77066 HC-35 614, 1014, 1015 Beneke Elementary School, 3840 Briarchase Drive, Houston 77014 HC-36 757, 1045 Bammel Middle School, 16711 Ella Blvd., Houston 77090 HC-37 660 Thompson Elementary School, 12470 Walters Road, Houston 77014 HC-38 717(*4),

1035(*4) Lewis Elementary School, 3230 Spears Road, Houston 77067

HC-39 549(*4) Link Elementary School, 2815 Ridge Hollow Drive, Houston 77067 HC-4 452, 552, 575,

690, 735, 999, 1030

Northampton M.U.D. Building, 6012 Root Road, Spring 77389

HC-40 358(*4), 629, 957, 958(*4), 959(*4)

Richard and Kitty Spence Elementary School, 1300 Gears Road, Houston 77067

HC-41 520 Meyer Elementary School, 16330 Forest Way Drive, Houston 77090 HC-42 449, 657, 729,

883 Nimitz High School, 2005 W.W. Thorne Drive, Houston 77073

HC-43 342(*4) Calvert Elementary School, 1925 Marvell Drive, Houston 77032 HC-44 794 Harvest Time Church, 17770 Imperial Valley Drive, Houston 77060 HC-45 101, 106(*4),

817 Vincenzo’s Italian Grill, 12510 North Freeway, Houston 77060

HC-46 410(*4) Holiday Inn Express, 7014 Will Clayton Parkway, Humble 77338 HC-47 705(*4),

733(*4), 767(*4) Francis Elementary School, 14815 Lee Road, Houston 77032

HC-48 149, 875 Cypress Springs High School, 7909 Fry Road., Cypress 77433 HC-49 305, 617, 712,

804, 877, 881, 919, 951, 1016, 1062

Jowell Elementary School, 6355 Greenhouse Road, Katy 77449

HC-5 263(*9), 482(*9), 672, 851(*9),876(*9)

Roth Elementary School, 21623 Castlemont Lane, Spring 77388

HC-50 50, 314, 616 Cypress Falls High School, 9811 Huffmeister Road, Houston 77095 HC-51 553(*3), 651,

803 Holmsley Elementary School, 7315 Hudson Oaks Drive, Houston 77095

*3 = District 3 *4 = District 4 *9 = District 9

HC-52 517(*3), 643(*3), 650(*3), 882(*3)

Peggy Wilson Elementary School, 18015 Keith Harrow Blvd., Houston 77084

HC-53 642(*3), 667, 800, 1023(*3)

Lowery Elementary School, 15950 Ridge Park Drive, Houston 77095

HC-54 622(*3) Ronnie Truitt Middle School, 6600 Addicks-Satsuma Road, Houston 77084 HC-55 398(*3), 771(*3) Horne Elementary School, 14950 West Little York Road, Houston 77084 HC-56 512(*3), 991(*3) Hairgrove Elementary School, 7120 N. Eldridge Parkway, Houston 77084 HC-57 74(*3), 495(*4),

687(*3), 904(*3),1028

Ramona Bang Elementary School, 8900 Rio Grande Drive, Houston 77064

HC-58 260(*3), 701(*3), 939(*3), 1033

Lafay Johnson Lee Elementary School, 12900 W. Little York Road, Houston 77084

HC-59 155(*3) Kirk Elementary School, 12421 Tanner Road, Houston 77041 HC-6 41, 110, 588,

634, 897, 898, 912, 913, 1017, 1018,

Salyers Elementary School, 25705 West Hardy Road, Spring 77373

HC-60 661 Lone Star College System-Fairbanks Center, 14955 Northwest Freeway, Houston 77040 HC-61 117(*3),

383(*3), 966(*3) Bane Elementary School, 5805 Kaiser Street, Houston 77040

HC-62 868(*4) Epps Island Elementary School, 7403 Smiling Wood Lane, Houston 77086 HC-63 496(*4) (Frazier Elementary School, 8300 Little River Road, Houston 77064 HC-64 593(*4) Cornerstone Four Square Church, 7791 Hillbarn Drive, Houston 77040 HC-65 628(*4),

859(*3)(*4), 870 Willie B. Ermel Elementary School, 7103 Woodmans Trail, Houston 77040

HC-66 364(*4) St. Timothy’s United Methodist Church, 8787 N. Houston Rosslyn Road, Houston 77088 HC-67 270(*3),

322(*3), 498(*3), 940(*3)

Holbrook Elementary School, 6402 Langfield Road, Houston 77092

HC-68 511, 697(*4), 884, 1063

Shotwell Middle School, 6515 Trail Valley Way, Houston 77086

HC-69 467(*3)(*4), 855(*3), 977(*4)

Klein Intermediate School, 4710 West Mount. Houston Road, Houston 77088

HC-7 596, 747 Mildred Jenkins Elementary School, 4615 Reynaldo Drive, Spring 77373 HC-70 723(*3) Eiland Elementary School, 6700 North Klein Circle Drive, Houston 77088 HC-71 594(*3), 848(*3) Eisenhower Senior High School, 7922 Antoine Drive, Houston 77088 HC-72 450(*3) Josie Ruth Smith Academy, 5815 West Little York, Houston 77091 HC-73 366(*4),

405(*4), 961(*4) Gloria B. Sammons Elementary School, 2301 Frick Road, Houston 77038

HC-74 197(*3), 494(*4), 987(*3)

Hill Intermediate School, 2625 W. Mount Houston Road, Houston 77038

HC-75 109(*3),169(*3) G.W. Carver Contemporary High School, 2100 South Victory Street, Houston 77088 HC-76 147(*3) Walter and Inez Stovall Academy, 3025 Ellington St., Houston 77088 HC-77 157 (*3),

576(*3) Highland Park-Recreation Center, 3316 De Soto Street., Houston 77091

HC-78 864(*4) Thomas Gray Elementary School, 700 West Road, Houston 77038 HC-79 185(*4), 595(*4) Hidden Valley Church of Christ, 9521 Sunnywood Drive, Houston 77038 HC-8 586, 587 Magrill Elementary School, 21701 Rayford Road, Humble 77338 HC-80 409(*4), 970(*4) Odom Elementary School, 14701 Henry Road, Houston 77060 HC-81 61(*4) Evelyn Thompson Elementary School, 220 Casa Grande Drive, Houston 77060 HC-82 408(*4), 780(*4) Lillja Baptist Church, 14623 Lillja Road, Houston 77060 HC-83 320(*4),

321(*4), 608(*4) Carroll Academy, 423 West Gulfbank, Houston 77037

HC-84 241(*4), 936(*4) Aldine Middle School, 14908 Aldine Westfield Road, Houston 77032

*3 = District 3 *4 = District 4 *9 = District 9

HC-85 497(*4), 743(*4) Beulah E. Johnson Elementary School, 5801 Hamill Road, Houston 77039 HC-86 664(*4) Oleson Elementary School, 12345 Vickery St., Houston 77039 HC-87 411(*4) Mary Walke Stephens Elementary School, 2402 Aldine Mail Route, Houston 77039 HC-88 571(*4), 591(*4) Bill Worsham Elementary School, 3007 Hartwick Road, Houston 77093 HC-89 107(*4),

152(*4), 212(*4), 254(*4), 843, 937

Mendel Elementary School, 3735 Topping Street, Houston 77093

HC-9 35, 457, 756, 1007, 1042, 1043, 1044

Jones EC/PK/K Center, 8003 Forest Point Drive, Humble 77338

HC-90 689(*3) Korean Christian Church of Houston, 10410 Clay Road, Houston 77041 HC-92 397(*4), 737,

738(*4), 1038(*4)

Holiday Inn Houston Intercontinental, 15222 John F. Kennedy Blvd., Houston 77032

HC-94 698(*4) Conley Elementary School, 3345 W. Greens Road, Houston 77066 HC-95 143, 709, 921,

923 Harris County Public Library Cy-Fair, 9191 Barker Cypress Rd, Cypress 77433

HC-96 861(*3) Nitsch Elementary School, 4702 West Mount Houston Road, Houston 77088 HC-97 423(*4) Black Elementary School, 160 Mill Stream Lane, Houston 77060 HC-98 792(*4) Harris County WCID #74 Building, 4901 Sandydale Lane, Houston 77039 HC-99 108(*4), 334,

598, 599, 776, 911, 1047

Humble City Hall/Council Chamber, 114 W. Higgins St., Humble 77338

HC-100 45, 83(*4), 363, 380, 742, 840(*4), 847, 799, 960, 964

North Belt Elementary School, 8105 North Belt Drive, Humble 77338

HC-101 388, 351, 658, 659, 674, 764, 885, 967, 968

Oaks Elementary School, 5858 Upper Lake Drive, Humble 77338

HC-102 199, 469 Foster Elementary School, 1800 Trailwood Village Drive, Kingwood 77339 HC-103 340, 357, 590,

635, 636, 758 Kingwood Middle School, 2407 Pine Terrace Drive, Kingwood 77339

HC-104 459, 563, 612, 670, 760

Creekwood Middle School, 3603 West Lake Houston Parkway, Kingwood 77339

HC-105 726(*9), 1036(*9)

Salem Lutheran Church Fellowship Hall, 22601 Lutheran Church Road, Tomball 77377

HC-106 126(*9) Rosehill Elementary School, 17950 Waller Tomball Road, Tomball 77377 HC-107 127, 245(*9),

529 Tomball Public Works Building, 501 James Street, Tomball 77375

TB-5 484, 486(*9), 878(*9), 983,

Lakewood Elementary School, 15614 Gettysburg Drive, Tomball 77377

HC-108 173(*9), 485(*9), 926(*9), 982(*9)

Willow Creek Elementary School, 18302 North Eldridge Pkwy, Tomball 77375

HC-109 114, 915, 916 Samuel Matthews Park Community Center, 1728 Hufsmith Rd., Tomball 77375 HC-110 914, 1029 Creekside Forest Elementary School, 5949 Creekside Forest Dr., The Woodlands 77389

LSCS Election Precincts

in San Jacinto County

All or Parts of San Jacinto

County Precincts

San Jacinto County Polling Places

Only registered voters within these jurisdictions are eligible to vote

SJC-1 5 Bear Creek VFD, 11550 FM 1725 Bear Creek, TX SJC-2 14 Old Waverly School Building, 11 Lewis Lane, Old Waverly, TX

EXHIBIT B

Early voting by personal appearance will be conducted Monday-Friday, October 20-24, 2014 from 8:00 a.m. to 5:00 p.m., Saturday, October 25 from 7:00 a.m.-7:00 p.m., Sunday, October 26 from 12:00 p.m.-5:00 p.m. and Monday-Friday, October 27-31 from 7:00 a.m. to 7:00 p.m. for Montgomery County, Harris County and San Jacinto County at the polling locations listed in below. Montgomery County registered voters may early vote at any of the Montgomery County early voting locations, Harris County registered voters may early vote at any of the Harris County voting locations, and San Jacinto County registered voters may early vote at the San Jacinto County early voting location to vote in Lone Star College System’s election.

Montgomery County

Election Central (Limited Ballots, Special Forms of Early Voting and Ballot by Mail only) 9159 Airport Road ‐ Conroe, Texas 77303 Lee G. Alworth Building (Montgomery County Administration Annex) (Main Early Voting Polling Place) 207 West Phillips ‐ Conroe, Texas 77301 Magnolia Volunteer Fire Department #181 18215 Buddy Riley Boulevard Magnolia, Texas 77354 South County Community Building 2235 Lake Robbins Drive The Woodlands, Texas 77380 North Montgomery County Community Center 600 Gerald Street Willis, Texas 77378 East County Courthouse Annex 21130 U. S. Highway 59 South New Caney, Texas 77357 Lone Star Community Center 2500 Lone Star Parkway Montgomery, Texas 77356 George and Cynthia Woods‐Mitchell Library 8125 Ashlane Way The Woodlands, Texas 77382

Harris County

Harris County Administration Building 1001 Preston, 4th Floor Houston, TX 77002 Lone Star College-CyFair LRNC 131 9191 Barker Cypress Road Cypress 77433 Lone Star College-North Harris Library Bldg., Room 103 2700 W.W. Thorne Drive Houston 77073 Lone Star College-Tomball Art Gallery, Room E164 30555 Tomball Parkway Tomball 77375 Lone Star College-Fairbanks Center Room 107 14955 Northwest Freeway Houston 77040

Lone Star College-Victory Center Room 102 4141 Victory Drive Houston, TX 77088 Lone Star College-Greenspoint Center Room 107 250 N. Sam Houston Parkway East Houston 77060 Lone Star College-University Park Universe Room 20515 SH 249 Houston 77070 Humble City Hall/Council Chamber 114 W. Higgins St. Humble, TX 77338 Humble ISD Administration Building 20200 Eastway Village Drive Humble 77338 Humble ISD Instructional Support Center (ISC) 4810 Magnolia Cove Drive Kingwood, TX 77345

San Jacinto County

51 East Pine Avenue, Room A1 Coldspring, Texas 77331 The Early Voting Clerk for the joint election in Montgomery County, hereby designated to be Suzie Harvey, Montgomery County Elections Administrator 9159 Airport Road, Conroe, TX 77303 will process, mail and tabulate the early ballots by mail for Montgomery County.

Financial Report and Consideration No. 1 Board Meeting 8-7-14 Report: Monthly Financial Statements

The financial statements for the month ended June 30, 2014 and May 31, 2014,

and the quarterly report for the period ending May 31, 2014 are presented for Board review.

Prior to fiscal year 2010‐11, the System’s financial software dated revenues as earned the same day as entered into the system.  The current software,implemented in 2010‐11, dates revenues in the time period the revenues are earned, regardless of the date the amounts were entered into the software program.

0%

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13‐1412‐1311‐1210‐1109‐1008‐09

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4%4%3%3%

9%8%

13%10%10%11%

13%13%

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29%

21%22%

7%10%

9%11%12%

13%

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6%7%3%3%3%

3%

6%6%2%2%2%2%

3%4% 8%8%8%8%

3%4%

% OF BUDGETED REVENUES COLLECTED

JUNE

MAY

APRIL

MARCH

FEBRUARY

JANUARY

DECEMBER

NOVEMBER

OCTOBER

SEPTEMBER

   Prior to fiscal year 2010‐11, the System’s financial software dated expenditures as incurred on the same day as entered into the system.  The current software,   implemented in 2010‐11, dates expenditures in the time period the expenditures are incurred, regardless of the date the amounts were entered into the software program.

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9%8%7%9%

8%8%7%

8%9%8%7%8%8%

7%8%8%8%8%7%

9%7%7%7%8%7%

% OF BUDGETED EXPENDITURES USED

JUNE

MAY

APRIL

MARCH

FEBRUARY

JANUARY

DECEMBER

NOVEMBER

OCTOBER

SEPTEMBER

08‐09 09‐10         10‐11         11‐12       12‐13    13‐14  

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30%

40%

50%

60%

70%

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90%

100%

SEPTEMBER

SEPTEMBER

OCTOBER

OCTOBER

NOVEMBER

NOVEMBER

DECEMBER

DECEMBER

JANUARY

JANUARY

FEBRUARY

FEBRUARY

MARCH

MARCH

APRIL

APRIL

MAY

MAY

JUNE

JUNE

HOW MUCH DO WE NEED IN RESERVES?

REVENUES EXPENDITURES

‐$20

$0

$20

$40

$60

$80

$100

$120

08‐09 09‐10 10‐11 11‐12 12‐13 13‐14

Millions

STUDENT REVENUES ‐ FALL, SPRING & SUMMER SEMESTERS

IN‐DISTRICT TUITION OUT OF DISTRICT TUITION OUT OF STATE/INTERNATL TUITIONDUAL CREDIT TUITION FEES‐ALL STUDENTS STATE DEDUCTIONSNON‐CREDIT CORPORATE COLLEGE

‐20%

0%

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60%

80%

100%

08‐09 09‐10 10‐11 11‐12 12‐13 13‐14

TYPES OF STUDENT REVENUES ‐ FALL, SPRING & SUMMER SEMESTERS

CORPORATE COLLEGE

NON‐CREDIT

STATE DEDUCTIONS

FEES‐ALL STUDENTS

DUAL CREDIT TUITION

OUT OF STATE/INTERNATLTUITION

OUT OF DISTRICT TUITION

IN‐DISTRICT TUITION

LONE STAR COLLEGE SYSTEM

Statement of Revenues and ExpendituresGeneral and Auxiliary FundsYear to Date June 30, 2014Unaudited

83% OF PRIOR YEAR PRIOR YEARFISCAL YEAR % ACTUAL ACTUAL % ACTUAL

BUDGET ACTUAL TO BUDGET 6/30/2013 TO BUDGET

REVENUES:

State Appropriations $ 72,510,000 $ 58,705,316 81.0% $ 54,394,178 81.8%Tuition and Fees 102,720,000 99,597,935 97.0% 95,777,036 97.5%Taxes 109,570,000 109,256,624 99.7% 104,862,898 99.4%Investments 400,000 285,948 71.5% 323,918 99.7%Other 5,980,000 4,254,147 71.1% 3,991,422 74.0%Tuition/Growth Contingency 2,250,000 0 0.0% 0 0.0%

Total Current Operations Revenues 293,430,000 272,099,970 92.7% 259,349,452 93.0%

Auxiliary Revenues 14,700,000 10,894,309 74.1% 7,278,253 66.2%

Total Revenues 308,130,000 282,994,279 91.8% 266,627,705 92.0%

Reserves 9,660,000 - 0.0%

Total Revenues and Reserves 317,790,000 282,994,279 266,627,705

EXPENDITURES:

Instruction-Academic 75,692,530 63,879,346 84.4% 63,396,811 86.8%Instruction-Workforce 29,668,733 25,828,228 87.1% 24,251,728 86.6%Public Service 812,783 636,656 78.3% 584,416 70.8%Academic Support 53,548,614 36,420,203 68.0% 32,866,850 69.3%Student Services 43,066,580 29,167,688 67.7% 26,718,967 71.7%Institutional Support 33,116,715 24,211,528 73.1% 21,347,762 71.4%Plant Operation and Maintenance 32,741,730 23,885,092 72.9% 24,170,295 76.8%Staff Benefits 17,764,315 19,544,156 110.0% 16,650,012 71.8%Growth Contingency 1,328,000 - 0.0% - 0.0%

Total Educational and General Expenditures 287,740,000 223,572,897 77.7% 209,986,841 76.6%

Repair, Replacement and Other Internally Designated 4,800,000 1,531,935 31.9% 1,069,383 24.9%

Auxiliary 14,700,000 8,876,377 60.4% 7,101,166 64.6%

Total Expenditures 307,240,000 233,981,209 76.2% 218,157,390 75.4%

Other Changes - Debt Service & Fund Transfers 10,550,000 6,843,695 5,106,061

Total Expenditures and Transfers 317,790,000 240,824,904 223,263,451

NET INCREASE (DECREASE) IN FUND BALANCESGeneral Funds 0 40,151,443 43,187,167Auxiliary Funds 0 2,017,932 177,087

TOTAL NET INCREASE (DECREASE) IN FUND BALANCES $ 0 $ 42,169,375 $ 43,364,254

LONE STAR COLLEGE SYSTEM

Balance SheetJune 30, 2014Unaudited

GASB 34/35 MemorandumGeneral & Reporting & Totals

ASSETS Restricted Investment In Plant Current Year

Cash $ (13,812,754) $ 16,616,813 $ - $ 2,804,059Accounts receivable, net 20,480,637 5,593,707 4,614,731 30,689,075Investments 109,470,744 92,061,276 - 201,532,020Prepaid and deferred expenses 5,688,191 - 5,688,191Inventories, at cost 40,066 - - 40,066Amount to be provided for retirement long-term debt - 583,055,434 - 583,055,434Capital assets, net - - 751,833,204 751,833,204

TOTAL ASSETS $ 121,866,884 $ 697,327,230 $ 756,447,935 $ 1,575,642,049

LIABILITIES AND FUND BALANCES

LIABILITIES:Accounts payable $ 10,304,992 $ 6,768,493 1,892,732 $ 18,966,217Deferred revenues 5,453,085 4,943,399 - 10,396,484Accrued compensable absences payable 7,615,482 319,805 - 7,935,287Accrued interest payable - 10,260,999 - 10,260,999Bonds payable - 627,859,180 - 627,859,180Assets held in custody for others - 7,688,341 - 7,688,341

TOTAL LIABILITIES 23,373,559 657,840,217 1,892,732 683,106,508

FUND BALANCES:Unrestricted 98,493,325 - 458,598,762 557,092,087 Restricted

Non grant agreements - (133,045) - (133,045) Restricted for construction - 30,888,563 294,526,162 325,414,725 Debt service - 8,731,495 1,430,279 10,161,774

TOTAL FUND BALANCES 98,493,325 39,487,013 754,555,203 892,535,541

TOTAL LIABILITIES AND FUND BALANCES $ 121,866,884 $ 697,327,230 $ 756,447,935 $ 1,575,642,049

Auxiliary

Description Ending BV 05/31/2014 Total Buys Total Sells Interest/Dividends Ending BV 06/30/2014 Ending BV 06/30/2013

Weighted Avg.

Purchase Yield

GENERAL FUNDS

CASH 164,523

POOLS 38,882,027 4,115 9,455,705 4,115 29,430,437 24,786,140

AGENCIES

CERTIFICATE OF DEPOSIT 63,232,961 28,257 2,026,201 29,757 61,235,018 63,255,818

MONEY MARKET ACCOUNT 15,101,988 2,200 2,200 15,104,188 15,014,775

BONDS 3,412,704 0 781 3,411,923

Total / Average 120,629,680 34,572 11,482,687 36,071.75 109,181,565 103,221,256 0.29%DEBT SERVICE & CAPITAL

PROJECTS

CERTIFICATE OF DEPOSIT 35,011,175 2,296 2,296 35,013,471 5,109,631

DEBT SERVICE POOLS 33,634,048 851,022 4,759 34,485,069 28,914,257

COMMERCIAL PAPER 6,396,871

CAPITAL PROJECTS POOLS 8,605,815 1,014 1,083,124 1,014 7,523,705 21,741,147

MONEY MARKET ACCOUNT 15,035,830 3,202 3,202 15,039,031 5,008,829

Total / Average 92,286,868 857,533 1,083,124 11,270 92,061,276 67,170,735 0.19%

TOTAL 212,916,548 892,104 12,565,811 47,342 201,242,841 170,391,991 0.25%

LONE STAR COLLEGE SYSTEMSUMMARY OF INVESTMENTS

AS OF JUNE 30, 2014

LONE STAR COLLEGE SYSTEM

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

GENERAL FUNDS DEBT SERVICE & CAPITAL PROJECTS TOTAL

JUNE 2014, PORTFOLIO REPORT

 ENDING BV FY JUNE2014

 ENDING BV FY JUNE2013

Prior to fiscal year 2010‐11, the System’s financial software dated revenues as earned the same day as entered into the system.  The current software,implemented in 2010‐11, dates revenues in the time period the revenues are earned, regardless of the date the amounts were entered into the software program.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

13‐1412‐1311‐1210‐1109‐1008‐09

17%17%18%16%16%15%

4%4%3%4%4%4%

4%4%3%3%

9%8%

13%10%10%11%

13%13%

30%30%32%

29%

21%22%

7%10%

9%11%12%

13%

4%4%4%4%

6%7%3%3%3%

3%

6%6%2%2%2%2%

3%4%

% OF BUDGETED REVENUES COLLECTED

MAY

APRIL

MARCH

FEBRUARY

JANUARY

DECEMBER

NOVEMBER

OCTOBER

SEPTEMBER

   Prior to fiscal year 2010‐11, the System’s financial software dated expenditures as incurred on the same day as entered into the system.  The current software,   implemented in 2010‐11, dates expenditures in the time period the expenditures are incurred, regardless of the date the amounts were entered into the software program.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

8%7%8%7%7%7%

7%7%6%8%8%8%

7%7%8%7%8%8%

7%7%8%8%8%8%

7%7%6%7%7%8%

8%9%7%8%10%

9%8%7%9%

8%8%7%

8%9%8%7%8%8%

7%8%8%8%8%7%

% OF BUDGETED EXPENDITURES USED

MAY

APRIL

MARCH

FEBRUARY

JANUARY

DECEMBER

NOVEMBER

OCTOBER

SEPTEMBER

08‐09 09‐10         10‐11         11‐12         12‐13         13‐14     

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

SEPTEMBER

SEPTEMBER

OCTOBER

OCTOBER

NOVEMBER

NOVEMBER

DECEMBER

DECEMBER

JANUARY

JANUARY

FEBRUARY

FEBRUARY

MARCH

MARCH

APRIL

APRIL

MAY

MAY

HOW MUCH DO WE NEED IN RESERVES?

REVENUES EXPENDITURES

LONE STAR COLLEGE SYSTEM

Statement of Revenues and ExpendituresGeneral and Auxiliary FundsYear to Date May 31, 2014Unaudited

75% OF PRIOR YEAR PRIOR YEARFISCAL YEAR % ACTUAL ACTUAL % ACTUAL

BUDGET ACTUAL TO BUDGET 5/31/2013 TO BUDGET

REVENUES:

State Appropriations $ 72,510,000 $ 51,820,124 71.5% $ 48,171,396 72.4%Tuition and Fees 102,720,000 83,042,649 80.8% 80,468,006 81.9%Taxes 109,570,000 108,655,759 99.2% 104,471,541 99.0%Investments 400,000 252,189 63.0% 291,186 89.6%Other 5,980,000 3,556,979 59.5% 3,305,966 61.3%Tuition/Growth Contingency 2,250,000 0 0.0% 0 0.0%

Total Current Operations Revenues 293,430,000 247,327,700 84.3% 236,708,095 84.9%

Auxiliary Revenues 14,700,000 10,558,414 71.8% 6,907,780 62.8%

Total Revenues 308,130,000 257,886,114 83.7% 243,615,875 84.0%

Reserves 9,660,000 - 0.0%

Total Revenues and Reserves 317,790,000 257,886,114 243,615,875

EXPENDITURES:

Instruction-Academic 75,301,159 57,833,744 76.8% 57,566,577 78.9%Instruction-Workforce 29,382,595 23,327,068 79.4% 22,523,510 80.0%Public Service 856,743 566,031 66.1% 531,646 66.5%Academic Support 54,175,879 32,611,051 60.2% 29,740,067 62.0%Student Services 44,646,508 26,280,279 58.9% 24,168,716 64.9%Institutional Support 32,969,405 20,473,585 62.1% 19,405,300 63.9%Plant Operation and Maintenance 32,635,676 21,328,758 65.4% 21,983,951 72.4%Staff Benefits 16,444,035 17,429,098 106.0% 14,621,982 63.1%Growth Contingency 1,328,000 - 0.0% - 0.0%

Total Educational and General Expenditures 287,740,000 199,849,614 69.5% 190,541,749 69.5%

Repair, Replacement and Other Internally Designated 4,800,000 1,342,466 28.0% 766,962 17.8%

Auxiliary 14,700,000 7,953,971 54.1% 6,422,713 58.4%

Total Expenditures 307,240,000 209,146,051 68.1% 197,731,424 68.4%

Other Changes - Debt Service & Fund Transfers 10,550,000 1,918,825 5,106,061

Total Expenditures and Transfers 317,790,000 211,064,876 202,837,485

NET INCREASE (DECREASE) IN FUND BALANCESGeneral Funds 0 44,216,795 40,293,323Auxiliary Funds 0 2,604,443 485,067

TOTAL NET INCREASE (DECREASE) IN FUND BALANCES $ 0 $ 46,821,238 $ 40,778,390

LONE STAR COLLEGE SYSTEM

Balance SheetMay 31, 2014Unaudited

GASB 34/35 MemorandumGeneral & Reporting & Totals

ASSETS Restricted Investment In Plant Current Year

Cash $ (17,412,893) $ 17,018,066 $ - $ (394,827)Accounts receivable, net 11,437,013 2,569,478 4,614,731 18,621,222Investments 120,918,859 92,286,868 - 213,205,727Prepaid and deferred expenses 5,566,217 - 5,566,217Inventories, at cost 40,863 - - 40,863Amount to be provided for retirement long-term debt - 583,055,434 - 583,055,434Capital assets, net - - 753,327,292 753,327,292

TOTAL ASSETS $ 120,550,059 $ 694,929,846 $ 757,942,023 $ 1,573,421,928

LIABILITIES AND FUND BALANCES

LIABILITIES:Accounts payable $ 4,185,659 $ 6,709,388 1,892,731 $ 12,787,778Deferred revenues 5,926,380 5,309,735 - 11,236,115Accrued compensable absences payable 7,292,833 312,630 - 7,605,463Accrued interest payable - 7,959,710 - 7,959,710Bonds payable - 627,916,234 - 627,916,234Assets held in custody for others - 8,339,914 - 8,339,914

TOTAL LIABILITIES 17,404,872 656,547,611 1,892,731 675,845,214

FUND BALANCES:Unrestricted 103,145,187 - 459,187,135 562,332,322 Restricted

Non grant agreements - 75,336 - 75,336 Restricted for construction - 32,463,945 295,431,878 327,895,823 Debt service - 5,842,954 1,430,279 7,273,233

TOTAL FUND BALANCES 103,145,187 38,382,235 756,049,292 897,576,714

TOTAL LIABILITIES AND FUND BALANCES $ 120,550,059 $ 694,929,846 $ 757,942,023 $ 1,573,421,928

Auxiliary

QUARTERLY INVESTMENT REPORT

For the Quarter Ended

May 31, 2014

Prepared byValley View Consulting, L.L.C.

/s/ Cynthia F. GilliamCynthia F. Gilliam, Vice Chancellor for Administration & Finance/CFO

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

These reports were compiled using information provided by the Lone Star College System. No procedures were performed to test the accuracy or completeness of this information. The market values included in these reports were obtained by Valley View Consulting, L.L.C. from sources believed to be accurate and represent proprietary valuation. Due to market fluctuations these levels are not necessarily reflective of current liquidation values. Yield calculations are not determined using standard performance formulas, are not representative of total return yields and do not account for investment advisor fees.

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

Strategy Summary:

Quarter End Results by Investment Category:

Asset Type Book Value Market Value Book Value Market Value Avg. YieldPools/DDA/MMA 162,554,435$ 162,554,435$ 111,259,708$ 111,259,708$ 0.16%Securities/CDs 86,854,990 86,854,990 101,656,840 101,652,576 0.36%

Totals 249,409,424$ 249,409,424$ 212,916,548$ 212,912,284$

Total Portfolio 0.26% Total Portfolio 0.24%

Rolling Three Month Treasury 0.04% Rolling Three Month Treasury 0.05%Rolling Six Month Treasury 0.07% Rolling Six Month Treasury 0.07%Rolling One Year Treasury 0.12% Rolling One Year Treasury 0.13%

TexPool 0.03%

Quarterly Interest Earnings 138,245$ YTD Interest Earnings 366,815$

(1) Average Quarterly Yield calculated using quarter end report average yield and adjusted book value.

The Federal Open Market Committee (FOMC) maintained the Fed Funds target range between 0.00% and 0.25% (actual Fed Funds traded <10 bps). In December, the FOMC began tapering the Quantitative Easing (QE3) program. The monthly purchase amount has been decreased three times ($10 billion each time) to $55 billion. A continued, orderly tapering is anticipated as long as economic activity remains moderately positive. Fourth quarter 2013 GDP was revised lower to +2.4% from its earlier estimate of +3.2%. Employment data remains positive, but modest and inconsistent. The US stock markets touched new highs. Financial institution deposit yields generally provide the best interest earnings opportunity, although spreads to security yields have tightened.

Average Quarterly Yield (1) Average Quarter End Yields - Fiscal Year

February 28, 2014 May 31, 2014

Valley View Consulting, L.L.C.Page 1.

Valley View Consulting, L.L.C.

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0250500750

1,0001,2501,5001,7502,0002,250

S&P 500

Page 4.

Detail of Investment Holdings

Coupon/ Maturity Settlement Original Face/ Purchase Book Market Market Life Description Rating Discount Date Date Par Value Price Value Price Value (days) Yield

SSB MMA MMA 0.18% 06/01/14 05/31/14 20,119,472 1.00 20,119,472 1.00 20,119,472 1 0.18%Capital One MMA MMA 0.30% 06/01/14 05/31/14 15,028,301 1.00 15,028,301 1.00 15,028,301 1 0.30%LOGIC LGIP AAAm 0.10% 06/01/14 05/31/14 2,404,930 1.00 2,404,930 1.00 2,404,930 1 0.10%LSIP - Corporate LGIP AAAm 0.12% 06/01/14 05/31/14 8,166,834 1.00 8,166,834 1.00 8,166,834 1 0.12%LSIP - Corporate Plus (3) LGIP AAAm 0.14% 06/01/14 05/31/14 59,938,748 1.00 59,938,748 1.00 59,938,748 1 0.14%LSIP - Government LGIP AAAm 0.04% 06/01/14 05/31/14 94,953 1.00 94,953 1.00 94,953 1 0.04%TexPool LGIP AAAm 0.02% 06/01/14 05/31/14 223,029 1.00 223,029 1.00 223,029 1 0.02%TexPool - Prime LGIP AAAm 0.06% 06/01/14 05/31/14 5,283,441 1.00 5,283,441 1.00 5,283,441 1 0.06%

Southside Bank CD CD0339 0.22% 06/19/14 06/19/13 2,026,201 100.00 2,026,201 100.00 2,026,201 19 0.22%Cadence Bank CD CD5174 0.20% 07/01/14 03/24/14 2,036,725 100.00 2,036,725 100.00 2,036,725 31 0.20%Comerica Bank CD CD9481 0.41% 07/01/14 01/25/13 5,027,309 100.00 5,027,309 100.00 5,027,309 31 0.41%Southside Bank CD CD082914 0.65% 08/29/14 08/29/12 5,056,996 100.00 5,056,996 100.00 5,056,996 90 0.65%Southside Bank CD CD0252 0.30% 09/03/14 06/03/13 4,008,982 100.00 4,008,982 100.00 4,008,982 95 0.30%Southside Bank CD CD6191 0.40% 09/17/14 03/19/13 2,024,620 100.00 2,024,620 100.00 2,024,620 109 0.40%Comerica Bank CD CD9499 0.49% 10/01/14 01/25/13 4,529,389 100.00 4,529,389 100.00 4,529,389 123 0.49%Comerica Bank CD CD5507 0.20% 10/01/14 12/02/13 25,000,000 100.00 25,000,000 100.00 25,000,000 123 0.20%Texas Capital Bank CD CD112013R 0.25% 11/20/14 11/20/13 246,373 100.00 246,373 100.00 246,373 173 0.25%Green Bank CD CD0077R 0.55% 03/20/15 03/20/14 245,000 100.00 245,000 100.00 245,000 293 0.55%Southside Bank CD CD0841 0.42% 03/20/15 09/20/13 6,012,503 100.00 6,012,503 100.00 6,012,503 293 0.42%Comerica Bank CD CD5515 0.27% 07/01/15 12/02/13 10,011,175 100.00 10,011,175 100.00 10,011,175 396 0.27%Comerica Bank CD CD5911 0.23% 08/03/15 03/20/14 8,003,075 100.00 8,003,075 100.00 8,003,075 429 0.23%Dallas Wtrwrks & Swr - Muni 2354163T9 AAA 0.80% 10/01/15 03/25/14 2,400,000 100.00 2,412,704 100.42 2,410,080 488 0.40%Comerica Bank CD CD5671 0.44% 10/01/15 01/24/14 10,014,474 100.00 10,014,474 100.00 10,014,474 488 0.44%Comerica Bank CD CD9473R 0.40% 11/02/15 04/01/14 4,001,315 100.00 4,001,315 100.00 4,001,315 520 0.40%Houston Comm. College - Muni 442368KS4 Aa 0.62% 04/15/16 04/16/14 1,000,000 100.00 1,000,000 99.84 998,360 685 0.62%Comerica Bank CD CD050216 0.64% 05/02/16 05/29/14 10,000,000 100.00 10,000,000 100.00 10,000,000 702 0.64%

212,903,844$ 212,916,548$ 212,912,284$ 142 0.26%

May 31, 2014

(2) Weighted average yield to maturity - For purposes of calculating weighted average yield to maturity, realized and unrealized gains/losses, and Investment Advisor fees are not considered.

(1) Weighted average life - For purposes of calculating weighted average life, Bank Deposit, Local Government Investment Pool, and Money Market Mutual Fund investments are assumed to have a one day maturity.

(3) Original Face/Par Value - For reporting purposes, Purchase Price and Market Price are reported as $1.00 and Original Face/Par Value is adjusted accordingly. Actual Purchase Price and Market Price is $0.50, consequentially Original Face/Par Value would double.

Valley View Consulting, L.L.C.Page 5.

Valley View Consulting, L.L.C.

Certificates of Deposit

46%

MMA16%

LOGIC1%

LSIP32%

TexPool3%

Securities2%

Portfolio Composition

This chart describes the portfolio's portion of each investment pool or category.

Page 6.

Valley View Consulting, L.L.C.

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

Total Portfolio

Quarter End Book Value

This chart tracks the LSCS's Total Portfolio Book Value quarter-by-quarter to provide an historical perspective of the System's financial position.

Page 7.

Valley View Consulting, L.L.C.

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000Book Value Maturity Distribution

Maturity Date Call Date

This chart groups the portfolio's positions by maturity and call date. At this time there are no callable investments.

Page 8.

Book Value Comparison

Coupon/ Maturity Original Face/ Original Face/Discount Date Par Value Book Value Purchases Maturities/Calls Par Value Book Value

SSB MMA 0.18% 06/01/14 20,110,380$ 20,110,380$ 9,092$ -$ 20,119,472$ 20,119,472$ Capital One MMA 0.30% 06/01/14 15,016,941 15,016,941 11,360 15,028,301 15,028,301 LOGIC 0.10% 06/01/14 2,404,386 2,404,386 544 2,404,930 2,404,930 LSIP - Corporate 0.12% 06/01/14 12,317,956 12,317,956 (4,151,122) 8,166,834 8,166,834 LSIP - Corporate Plus 0.14% 06/01/14 111,023,843 111,023,843 (51,085,095) 59,938,748 59,938,748 LSIP - Government 0.04% 06/01/14 290,043 290,043 (195,090) 94,953 94,953 TexPool 0.02% 06/01/14 223,013 223,013 16 223,029 223,029 TexPool - Prime 0.06% 06/01/14 1,167,873 1,167,873 4,115,568 5,283,441 5,283,441

Green Bank CD 0.50% 03/20/14 245,000 245,000 (245,000) Encore Bank CD 0.90% 03/20/14 2,032,603 2,032,603 (2,032,603) Comerica Bank CD 0.33% 04/01/14 5,017,931 5,017,931 (5,017,931) Comerica Bank CD 0.49% 05/01/14 603,654 603,654 (603,654) Southside Bank CD 0.61% 05/29/14 5,045,967 5,045,967 (5,045,967) Southside Bank CD 0.22% 06/19/14 2,025,102 2,025,102 1,099 2,026,201 2,026,201 Cadence Bank CD 0.20% 07/01/14 2,036,725 2,036,725 2,036,725 Comerica Bank CD 0.41% 07/01/14 5,022,287 5,022,287 5,023 5,027,309 5,027,309 Southside Bank CD 0.65% 08/29/14 5,048,993 5,048,993 8,002 5,056,996 5,056,996 Southside Bank CD 0.30% 09/03/14 4,006,019 4,006,019 2,963 4,008,982 4,008,982 Southside Bank CD 0.40% 09/17/14 2,022,625 2,022,625 1,995 2,024,620 2,024,620 Comerica Bank CD 0.49% 10/01/14 4,523,982 4,523,982 5,407 4,529,389 4,529,389 Comerica Bank CD 0.20% 10/01/14 25,000,000 25,000,000 25,000,000 25,000,000 Texas Capital Bank CD 0.25% 11/20/14 246,221 246,221 152 246,373 246,373 Green Bank CD 0.55% 03/20/15 245,000 245,000 245,000 Southside Bank CD 0.42% 03/20/15 6,006,283 6,006,283 6,220 6,012,503 6,012,503 Comerica Bank CD 0.27% 07/01/15 10,004,587 10,004,587 6,588 10,011,175 10,011,175 Comerica Bank CD 0.23% 08/03/15 8,003,075 8,003,075 8,003,075 Dallas Wtrwrks & Swr - Muni 0.80% 10/01/15 2,412,704 2,400,000 2,412,704 Comerica Bank CD 0.44% 10/01/15 10,003,737 10,003,737 10,737 10,014,474 10,014,474 Comerica Bank CD 0.40% 11/02/15 4,001,315 4,001,315 4,001,315 Houston Comm. College - Muni 0.62% 04/15/16 1,000,000 1,000,000 1,000,000 Comerica Bank CD 0.64% 05/02/16 10,000,000 10,000,000 10,000,000

249,409,424$ 249,409,424$ 31,883,585$ (68,376,462)$ 212,903,844$ 212,916,548$

May 31, 2014February 28, 2014

Valley View Consulting, L.L.C.Page 9.

Market Value Comparison

Coupon/ Maturity Original Face/ Quarter End Original Face/Discount Date Par Value Market Value Change Par Value Market Value

SSB MMA 0.18% 06/01/14 20,110,380$ 20,110,380$ 9,092$ 20,119,472$ 20,119,472$ Capital One MMA 0.30% 06/01/14 15,016,941 15,016,941 11,360 15,028,301 15,028,301 LOGIC 0.10% 06/01/14 2,404,386 2,404,386 544 2,404,930 2,404,930 LSIP - Corporate 0.12% 06/01/14 12,317,956 12,317,956 (4,151,122) 8,166,834 8,166,834 LSIP - Corporate Plus 0.14% 06/01/14 111,023,843 111,023,843 (51,085,095) 59,938,748 59,938,748 LSIP - Government 0.04% 06/01/14 290,043 290,043 (195,090) 94,953 94,953 TexPool 0.02% 06/01/14 223,013 223,013 16 223,029 223,029 TexPool - Prime 0.06% 06/01/14 1,167,873 1,167,873 4,115,568 5,283,441 5,283,441

Green Bank CD 0.50% 03/20/14 245,000 245,000 (245,000) Encore Bank CD 0.90% 03/20/14 2,032,603 2,032,603 (2,032,603) Comerica Bank CD 0.33% 04/01/14 5,017,931 5,017,931 (5,017,931) Comerica Bank CD 0.49% 05/01/14 603,654 603,654 (603,654) Southside Bank CD 0.61% 05/29/14 5,045,967 5,045,967 (5,045,967) Southside Bank CD 0.22% 06/19/14 2,025,102 2,025,102 1,099 2,026,201 2,026,201 Cadence Bank CD 0.20% 07/01/14 2,036,725 2,036,725 2,036,725 Comerica Bank CD 0.41% 07/01/14 5,022,287 5,022,287 5,023 5,027,309 5,027,309 Southside Bank CD 0.65% 08/29/14 5,048,993 5,048,993 8,002 5,056,996 5,056,996 Southside Bank CD 0.30% 09/03/14 4,006,019 4,006,019 2,963 4,008,982 4,008,982 Southside Bank CD 0.40% 09/17/14 2,022,625 2,022,625 1,995 2,024,620 2,024,620 Comerica Bank CD 0.49% 10/01/14 4,523,982 4,523,982 5,407 4,529,389 4,529,389 Comerica Bank CD 0.20% 10/01/14 25,000,000 25,000,000 - 25,000,000 25,000,000 Texas Capital Bank CD 0.25% 11/20/14 246,221 246,221 152 246,373 246,373 Green Bank CD 0.55% 03/20/15 245,000 245,000 245,000 Southside Bank CD 0.42% 03/20/15 6,006,283 6,006,283 6,220 6,012,503 6,012,503 Comerica Bank CD 0.27% 07/01/15 10,004,587 10,004,587 6,588 10,011,175 10,011,175 Comerica Bank CD 0.23% 08/03/15 8,003,075 8,003,075 8,003,075 Dallas Wtrwrks & Swr - Muni 0.80% 10/01/15 2,410,080 2,400,000 2,410,080 Comerica Bank CD 0.44% 10/01/15 10,003,737 10,003,737 10,737 10,014,474 10,014,474 Comerica Bank CD 0.40% 11/02/15 4,001,315 4,001,315 4,001,315 Houston Comm. College - Muni 0.62% 04/15/16 998,360 1,000,000 998,360 Comerica Bank CD 0.64% 05/02/16 10,000,000 10,000,000 10,000,000

249,409,424$ 249,409,424$ (36,497,140)$ 212,903,844$ 212,912,284$

May 31, 2014February 28, 2014

Valley View Consulting, L.L.C.Page 10.

Book Value Allocated by Fund

Operating CIP CIP CIP I & SDescription Maturity Fund Fund Revenue Bonds MTN Bond Fund Total

SSB MMA 06/01/14 15,101,988$ -$ 5,017,484$ -$ -$ 20,119,472$ Capital One MMA 06/01/14 10,018,345 5,009,955 15,028,301 LOGIC 06/01/14 2,313,124 34,545 40,259 17,002 2,404,930 LSIP - Corporate 06/01/14 3 351,563 7,801,979 13,288 8,166,834 LSIP - Corporate Plus 06/01/14 31,554,514 28,384,234 59,938,748 LSIP - Government 06/01/14 94,414 538 94,953 TexPool 06/01/14 13,999 209,030 223,029 TexPool - Prime 06/01/14 4,905,972 377,468 5,283,441

Southside Bank CD 06/19/14 2,026,201 2,026,201 Cadence Bank CD 07/01/14 2,036,725 2,036,725 Comerica Bank CD 07/01/14 5,027,309 5,027,309 Southside Bank CD 08/29/14 5,056,996 5,056,996 Southside Bank CD 09/03/14 4,008,982 4,008,982 Southside Bank CD 09/17/14 2,024,620 2,024,620 Comerica Bank CD 10/01/14 4,529,389 4,529,389 Comerica Bank CD 10/01/14 25,000,000 25,000,000 Texas Capital Bank CD 11/20/14 246,373 246,373 Green Bank CD 03/20/15 245,000 245,000 Southside Bank CD 03/20/15 6,012,503 6,012,503 Comerica Bank CD 07/01/15 10,011,175 10,011,175 Comerica Bank CD 08/03/15 8,003,075 8,003,075 Dallas Wtrwks & Swr 10/01/15 2,412,704 2,412,704 Comerica Bank CD 10/01/15 10,014,474 10,014,474 Comerica Bank CD 11/02/15 4,001,315 4,001,315 Houston Community College 04/15/16 1,000,000 1,000,000 Comerica Bank CD 05/02/16 10,000,000 10,000,000

Total 120,629,680$ 763,577$ 57,848,984$ 40,259$ 33,634,048$ 212,916,548$

May 31, 2014

Valley View Consulting, L.L.C. Page 11.

Market Value Allocated by Fund

Operating CIP CIP CIP I & SDescription Maturity Fund Fund Revenue Bonds MTN Bond Fund Total

SSB MMA 06/01/14 15,101,988$ -$ 5,017,484$ -$ -$ 20,119,472$ Capital One MMA 06/01/14 10,018,345 5,009,955 15,028,301 LOGIC 06/01/14 2,313,124 34,545 40,259 17,002 2,404,930 LSIP - Corporate 06/01/14 3 351,563 7,801,979 13,288 8,166,834 LSIP - Corporate Plus 06/01/14 31,554,514 28,384,234 59,938,748 LSIP - Government 06/01/14 94,414 538 94,953 TexPool 06/01/14 13,999 209,030 223,029 TexPool - Prime 06/01/14 4,905,972 377,468 5,283,441

Southside Bank CD 06/19/14 2,026,201 2,026,201 Cadence Bank CD 07/01/14 2,036,725 2,036,725 Comerica Bank CD 07/01/14 5,027,309 5,027,309 Southside Bank CD 08/29/14 5,056,996 5,056,996 Southside Bank CD 09/03/14 4,008,982 4,008,982 Southside Bank CD 09/17/14 2,024,620 2,024,620 Comerica Bank CD 10/01/14 4,529,389 4,529,389 Comerica Bank CD 10/01/14 25,000,000 25,000,000 Texas Capital Bank CD 11/20/14 246,373 246,373 Green Bank CD 03/20/15 245,000 245,000 Southside Bank CD 03/20/15 6,012,503 6,012,503 Comerica Bank CD 07/01/15 10,011,175 10,011,175 Comerica Bank CD 08/03/15 8,003,075 8,003,075 Dallas Wtrwks & Swr 10/01/15 2,410,080 2,410,080 Comerica Bank CD 10/01/15 10,014,474 10,014,474 Comerica Bank CD 11/02/15 4,001,315 4,001,315 Houston Community College 04/15/16 998,360 998,360 Comerica Bank CD 05/02/16 10,000,000 10,000,000

Total 120,625,416$ 763,577$ 57,848,984$ 40,259$ 33,634,048$ 212,912,284$

May 31, 2014

Valley View Consulting, L.L.C. Page 12.

Financial Report and Consideration No. 3 (ACTION ITEM 3) Board Meeting 8-7-14 Request: Consideration of Adoption of the Recommended 2014-15 Budgets Chancellor’s Recommendation:

That the Board of Trustees adopts the 2014-15 recommended budgets for the General and Auxiliary Funds.

Rationale: Following several months of study, planning, development and evaluation, the

administration, in consultation with the Board of Trustees, recommends a budget that accurately reflects the System’s educational plan for 2014-15. The recommended budgets are as follows: REVENUES/SOURCES:

SOURCE GENERAL AUXILIARY STATE ALLOCATIONS $ 72,510,000 STUDENT REVENUES 108,930,000 STUDENT REV. CONTINGENCY 1,750,000 LOCAL TAXES 116,230,000 MISCELLANEOUS ACTIVITIES 6,200,000 $15,000,000 RESERVES 11,310,000 TOTAL REVENUES/SOURCES $316,930,000 $15,000,000

EXPENDITURES/USES:

FUND AMOUNT OPERATING $ 296,810,000 STUDENT ACTIVITIES 2,750,000 REPAIRS AND REPLACEMENTS 5,050,000 TECHNOLOGY 12,320,000 TOTAL GENERAL FUNDS $ 316,930,000 AUXILIARY 15,000,000 TOTAL EXPENDITURES/USES $ 331,930,000

State allocations will not increase in 2014-15 since it is the second year in the State’s biennial budget. Student revenues reflect an estimated 4% growth in enrollments, as well as the $2 per credit hour tuition rate and $2 per credit hour technology fee increases approved by the Board of Trustees earlier this year. 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 over 10%. In anticipation of adopting the net effective tax rate, the 2014-15 budgeted tax revenues were estimated using a lower tax rate than in the 2014-15 budget. The 2014-15 budget contains several strategic initiatives in support of the System’s commitment to student success, including updating the online

curriculum development system, funding the second year of the Honors College initiative and modification of iStar to enable tracking of additional student data. Student data will be able to be retrieved and reported in greater detail, emphasizing student outcomes and accountability for those outcomes. Compensation recommendations included in the budget are as follows:

• A 2% cost of living adjustment for all full time employees effective September 1, 2014;

• A 1 ½ % pay increase for all full time employees effective March 1, 2015;

• 21 new full time faculty positions to maintain current ratio of full time faculty to part time faculty;

• Funds to cover any adjunct or part time employees qualifying for retirement and/or group health insurance benefits under the new mandates of the Affordable Care Act;

• A 4% increase in the part time hourly rates; • A 7% increase in group health insurance premiums, with the majority

of the increase offset by additional insurance funding provided by the state;

• And to assist employees with the increase in premiums, a tele-health program that is at no cost for employees and has the potential of providing employees with significant reductions in annual out-of-pocket and co-pay costs the employee incurs.

As an integral part of the budget process, an accountability plan was implemented in 2008-09. Various metrics, including administrative cost levels, instructional effectiveness, and student success rates, are measured and reported annually to the Board during the July budget workshop.

Fiscal Impact: Fund balance at the conclusion of the 2014-15 fiscal year is projected to be

16.4% of annual expenditures, if the above recommended budget is adopted. Staff Resource: Dr. Steve Head

Cindy Gilliam 832-813-6515 832-813-6512

Financial Report and Consideration No. 4 (ACTION ITEM 4) Board Meeting 8-7-14 Request: CONSIDERATION OF ADOPTION OF A RESOLUTION

APPROVING THE EXPANSION & REMODELING OF THE FACILITIES OF THE MONTGOMERY CENTRAL APPRAISAL DISTRICT

Chancellor’s Recommendation:

That the Board of Trustees adopts a resolution approving the expansion & remodeling of the facilities of the Montgomery Central Appraisal District.

Rationale: The Board of Directors of the Montgomery Central Appraisal District

have approved, by Resolution on April 24, 2014, to authorize the expansion and remodeling of facilities of the appraisal district, subject to approval by the governing bodies of three-fourths of the taxing units entitled to vote on the appointment of board members. The Lone Star College System of Montgomery County, Texas, has been certified by the Chief Appraiser of the Montgomery Central Appraisal District (MCAD) as being eligible and entitled to vote on the appointment of directors of MCAD. Failure to approve the resolution and return it to the Chief Appraiser will result in a “no” vote.

Fiscal Impact: Lone Star College System’s proportionate share of the MCAD budget is

4.3%. The potential cost to LSCS of this project based on the proportionate share would be $170,400 and would be included in the quarterly billings for appraisals. The billings are funded by both the general operating and the debt service funds. The annual appraisal district fees are included in the recommended 2014-15 budget.

Staff Resource: Cynthia Gilliam 832-813-6512

STATE OF TEXAS § COUNTY OF MONTGOMERY §

RESOLUTION Lone Star College System

RESOLUTION APPROVING THE EXPANSION & REMODELING OF THE FACILITIES

OF THE MONTGOMERY CENTRAL APPRAISAL DISTRICT

WHEREAS, § 6.051, TEXAS PROPERTY TAX CODE, authorizes the Board of Directors of an appraisal district to purchase real property and improvements and the construction or renovation of existing buildings, as necessary to establish and operate the appraisal office; and.

WHEREAS, the Board of Directors of the Montgomery Central Appraisal District have approved, by Resolution on April 24, 2014, to authorize the expansion and remodeling of facilities of the appraisal district, SUBJECT TO APPROVAL by the governing bodies of three-fourths of the taxing units entitled to vote on the appointment of board members; and

WHEREAS, the Lone Star College System of Montgomery County, Texas, has been certified by the Chief Appraiser of the Montgomery Central Appraisal District (MCAD) as being eligible and entitled to vote on the appointment of directors of MCAD;

THEREFORE BE IT RESOLVED, that the Lone Star College System of the County of Montgomery, Texas, does hereby:

APPROVE the acquisition of property for the expansion of the MCAD

PASSED AND APPROVED this the ____ day of________________, 2014.

________________________________ David Holsey, Chair

Attest: ______________________________________________ Priscilla Kelly, Secretary

Financial Report and Consideration No. 5 (ACTION ITEM 5) Board Meeting 8-7-14 Request: AN ORDER AUTHORIZING THE ISSUANCE OF LONE STAR

COLLEGE SYSTEM LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014; PROVIDING FOR THE AWARD OF THE SALE THEREOF IN ACCORDANCE TO SPECIFIED PARAMETERS; AUTHORIZING THE REDEMPTION AND/OR DEFEASANCE PRIOR TO MATURITY OF CERTAIN OUTSTANDING BONDS OF LONE STAR COLLEGE SYSTEM AND AUTHORIZING THE CHANCELLOR AND/OR VICE CHANCELLOR FOR ADMINISTRATION AND FINANCE/CHIEF FINANCIAL OFFICER TO TAKE ALL NECESSARY STEPS TO CAUSE THE REDEMPTION AND/OR DEFEASANCE OF SUCH BONDS; AND ENACTING OTHER PROVISIONS RELATED THERETO

Chancellor’s Recommendation:

That the Board of Trustees approves the order authorizing the issuance of Lone Star College System Limited Tax General Obligation Refunding Bonds, Series 2014 and the redemption and/or defeasance of certain outstanding debt with available funds of the System.

Rationale: The System has approximately $72 million in outstanding bonds which

were previously issued to fund certain capital projects. Collectively, the bonds are outstanding at an interest rate of about 5%. This debt can be refinanced with current interest rates of about 3%, which would produce debt service savings for the System. The parameter order allows the staff to identify the optimal time to issue the proposed refunding bonds to secure current interest rates, while also complying with related call provisions of the outstanding bonds, as some refunding candidates are eligible to be refunded as of the date hereof, while others become callable within the next few months. The System anticipates refunding up to $72,060,000 in outstanding bonds that meet certain parameters, which is expected to produce a 6% or greater present value savings.

Fiscal Impact: If all of the $72 million in refunding candidates were refunded in the

current market, the System would save approximately $8.3 million (in today’s dollars) or 11.5% of $72 million.

Staff Resource: Cindy Gilliam 832-813-6512

Financial Report and Consideration No. 6 (ACTION ITEM 6) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Science Supplies,

Equipment and Instructional Chemicals for the System Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of science supplies, equipment and instructional chemicals for the System from the attached list of vendors for an estimated amount of $600,000 annually and a not-to-exceed amount of $3,000,000 over five years. If science supplies, equipment and instructional chemicals are not available from the listed vendors, they may be purchased from vendors under contract with approved cooperatives.

Rationale: In June 2013, the Board awarded purchasing agreements to four

vendors for these instructional materials for a five-year period in the amount of $3,000,000. On several occasions, best value or supplies and equipment weren’t available from these vendors. An RFP was again issued in order to gain a larger pool of vendors to supply these instructional materials. 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. This purchase is in compliance with Texas Education Code §44.031. A Request for Proposals (RFP #323) was advertised and issued to 55 science supplies, equipment and instructional chemicals vendors and 14 responses were received. Vendor proposals were evaluated based on cost, qualifications experience/service needs met, other relevant factors, quality of services/quality plan, past performance, extent of certified historically underutilized businesses (HUB), minority and/or veteran and women owned businesses utilized, long term cost and vendor reputation. It is recommended that purchasing agreements be approved with all 14 vendors to ensure the best value instructional materials are available when needed. Three of the four vendors awarded purchases in the original RFP process responded to the new RFP and are included on the attached vendor list. The term of these agreements will be for two years beginning

September 2014 with the option to renew for three additional one-year periods based upon mutual consent. The renewal options may be subject to reasonable price increases based on vendor justification and approval by the System. The estimated amount of purchases is based on historical data over the previous 12-month period. The previous agreements will be terminated and new ones initiated under the current RFP process.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2014-15

operating budget. Funds for subsequent years will be included in future proposed budgets.

Staff Resource: Keri Rogers

832-813-6597

Financial Report and Consideration No. 7 (ACTION ITEM 7) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase an Echocardiography Machine

for the Echocardiography Program at LSC-CyFair

Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of an echocardiography machine for the Echocardiography program at LSC-CyFair in the amount of $122,004 from GE Healthcare, 9900 Innovation Drive, Wauwatosa, WI 53226.

Rationale: Laboratory instruction is imperative to the success of the Echocardiography program students. The purchase of this equipment will promote consistent classroom instruction and ease of training for students in the Echocardiography lab. This equipment is in virtually every hospital Echocardiography department in Houston. Purchasing this machine will ensure that students have the opportunity to master anatomy and scanning techniques in a classroom lab before attempting the procedures in the hospitals. This purchase is in compliance with Texas Education Code §44.031. A Request for Proposals (RFP #327) was advertised and issued to seven (7) registered healthcare equipment vendors and two (2) responses were received from separate divisions of one company. One of the responses proposed two different options. Only one proposal had the product offering that met the specifications included in the RFP. The proposal meeting the specifications was evaluated based on cost, quality of equipment and vendor references, value-added options, the extent to which certified historically underutilized businesses (HUB), minority and/or veteran and women owned businesses are utilized and long-term cost to the System. It is recommended to purchase the only product option that meets the specifications. See the attached proposal evaluation tabulation. The recommended product option allows for optimal imaging capabilities for all patient types and provides ease of instruction for both faculty and students. The Vivid E9 machine is compatible with LSC-CyFair lab’s current image review station that allows students the opportunity to create echocardiography exam reports. It will further complement the training students receive by preparing them for advanced breakthroughs in the field of ultrasound. The 4D feature of this machine is needed to train and prepare students to be competitive in advanced technology that is currently available in echocardiography imaging. Students will be more effective earlier at their clinical sites

since they will be training with the same equipment that they will be utilizing upon graduation and entering the workforce. Included in the price are a one-year warranty and three days of on-site training.

Fiscal Impact: Funds for this purchase are available from the approved FY 2013-14 operating budget.

Staff Resource: Audre Levy 281-290-3941

Financial Report and Consideration No. 8 (ACTION ITEM 8) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase X-Ray Equipment and

Accessories for the Medical Radiologic Technology (MRT) Program at LSC-Montgomery

Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of x-ray equipment and accessories for the MRT program at LSC-Montgomery from Blue Ox Medical Technologies, 7845 Colony Road, Suite C4-327, Charlotte, NC 28226, in the amount of $115,800.

Rationale: Currently the LSC–Montgomery MRT program does not have a c-arm

surgical radiographic imaging equipment or laboratory. Other radiologic technology programs around Houston have c-arm surgical imaging x-ray equipment. This equipment is needed to provide laboratory instruction, simulation, and intensive hands-on exercises to students. These instructional activities and hands-on exercises will enable MRT students to develop and perfect surgical imaging skills, acquire the required entry-level skills before graduation and increase their chances of getting jobs upon graduation. MRT employers require students to be properly trained before graduating and applying for a job. Surgical imaging is also a skill-area identified as deficient in LSC-Montgomery graduates’ survey results.

This purchase is in compliance with Texas Education Code §44.031. A Request for Proposals (RFP #331) was advertised and issued to six (6) registered x-ray equipment vendors and two (2) responses were received. Vendor proposals were evaluated based on cost, quality of equipment and vendor references, value-added options, the extent to which certified historically underutilized businesses (HUB), minority and/or veteran and women owned businesses are utilized and long-term cost to the System. It is recommended to award the purchase to the vendor with the highest evaluation score. The recommended vendor’s equipment comes with the required specifications for laboratory instruction, simulation, and student hands-on exercises. This is also the equipment utilized by most hospitals and outpatient surgery centers within and outside LSCS’s service area and ensures that students will be trained with the same equipment they will most likely work with upon graduation. The accessories are required for protection from the potential hazards of ionizing radiation. The equipment has a projected useful life of 10 years, and included in the price is a five-year warranty and two days of on-site training.

Fiscal Impact: Funds for this purchase are available from the approved FY 2013-14

operating budget.

Staff Resource: Austin Lane 936-273-7222

Financial Report and Consideration No. 9 (ACTION ITEM 9) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Workforce Equipment for the

Energy and Manufacturing Institute (EMI) at LSC-University Park Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of workforce equipment for the EMI at LSC-University Park from Mazak Corporation, 10950 Greenbend Blvd., Houston, TX 77067, in the amount of $229,300.

Rationale: A computer numerically controlled (CNC) lathe machine and a CNC

vertical mill center are needed to support the training offered at the EMI for energy, engineering, continuing education students and corporate clients. This purchase is in compliance with Texas Education Code §44.031. A Request for Proposals (RFP #272) was advertised and issued to twelve (12) registered energy and manufacturing equipment vendors and three (3) proposals were received for a lathe machine and a vertical mill center. Proposals were evaluated on cost, quality of equipment and vendor references, value-added options, the extent to which certified historically underutilized businesses (HUB), minority and/or veteran-owned businesses are utilized and long-term cost to the System. It is recommended to award the purchase to the vendor with the highest evaluation score. The recommended vendor provides an integrated control training system which meets the long term needs of LSCS students and faculty. In addition, this vendor will provide value-added features such as local 24/7 support, free upgrades, system certification of faculty and students, lifetime warranties and remote equipment operation.

Fiscal Impact: Funds for this purchase are available from the Revenue Bonds Series

2012B issued to fund the EMI building and related equipment. Staff Resource: Keri Rogers 832-813-6597

Financial Report and Consideration No. 10 (ACTION ITEM 10) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Instrumentation Equipment for

the Oil and Gas and Automated Service Technician Programs at the Energy and Manufacturing Institute (EMI) at LSC-University Park

Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of instrumentation equipment for the Oil and Gas and Automated Service Technician programs at EMI at LSC-University Park from Hampden Engineering Corporation, 99 Shaker Road, P.O. Box 563, East Longmeadow, MA 01028, in the amount of $284,733.

Rationale: Instrumentation and process control training equipment is required to

support the training offered for oil and gas and automated service technician credit and continuing education programs. The equipment will support hands-on training for enrolled students and those enrolled in customized corporate training programs. The acquisition of this equipment will support increased student enrollment in programs that align with industry/workforce needs, enhance the placement of graduates with hands-on technical training, and support the larger effort to promote science, engineering, technology and mathematic continuing education units and corporate college workforce education at LSCS. This purchase is in compliance with Texas Education Code §44.031 (a, 4) which allows the use of inter-local contracts. The purchase from Hampden Engineering Corporation is being conducted through the Texas Multiple Award Schedule purchasing cooperative contract No. 13-874070.

Fiscal Impact: Funds for this purchase are available from the State Energy

Conservation Office/Jobs and Education for Texans (SECO/JET) grant.

Staff Resource: Keri Rogers

832-813-6597

Financial Report and Consideration No. 11 (ACTION ITEM 11) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Engineering Equipment for

the Engineering Technology Petroleum Program at LSC-University Park

Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of engineering equipment for the Engineering Technology Petroleum program at LSC-University Park from Advanced Technologies Consultants, Inc., 110 West Main Street, P.O. Box 905, Northville, MI 48167, in the amount of $157,409.

Rationale: Instrumentation and process control training equipment is needed to

support the training for engineering/engineering technology students, continuing education students and corporate training clients. This equipment is used in the petroleum field and is a necessary component of the hands-on training required for the AAS degree, Engineering Technology-Petroleum Field Service Technician. This purchase is in compliance with Texas Education Code §44.031 (a, 4) which allows the use of inter-local contracts. The purchase from Advanced Technologies Consultants, Inc. is being conducted through the South East Texas (SETX) purchasing cooperative contract No. 383210796.

Fiscal Impact: Funds for this purchase are available from the approved FY 2013-14

operating budget. Staff Resource: Keri Rogers 832-813-6597

Financial Report and Consideration No. 12 (ACTION ITEM 12) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Library Materials, Supplies,

Services and Resource Sharing Membership Fees for FY 2014-15 Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of library materials, supplies, services and resource sharing membership fees for FY 2014-15 for the System’s libraries in an amount not-to-exceed $1,400,000. In addition, authorize the Chancellor or designee to execute any agreements related to these purchases.

Rationale: Library materials consist of serial and journal subscriptions (electronic

databases, digital content and information products), books, e-books and media. This purchase also includes library services (periodical jobber and binding services), library equipment and supplies; and library or resource-sharing program services provided by the Texas State Library and Archives Commission. The college system uses these materials and services to support faculty, staff and student needs. To obtain the best discount available, the college system will purchase books and non-print materials for college library collections through the Texas Procurement and Support Services (TPASS) cooperative purchasing contracts. The TPASS discounts substantially exceed any discount, including academic discounts, offered directly from a publisher, supplier or jobber. When materials are not available from an approved TPASS contract vendor, the library directors will obtain the materials through a method approved by state law and LSCS Board policy that offers the best value to the System.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2014-15

operating budget. Staff Resource: Keri Rogers 832-813-6597

Financial Report and Consideration No. 13 (ACTION ITEM 13) Board Meeting 8-7-14 Request: Consideration of Approval to Authorize the Chancellor or Designee to

Negotiate and Execute a Contract to Purchase a Facilities Management Services Program for LSC-North Harris and Related Satellite Centers

Chancellor’s Recommendation:

That the Board of Trustees authorizes the Chancellor or designee to negotiate and execute a contract to purchase a facilities management services program for LSC-North Harris and related satellite centers from TD Industries, Inc., 13850 Diplomat Drive, Dallas, TX 77040, in an estimated amount of $15,080,000 over a five year period.

Rationale: LSC-North Harris has demonstrated a need to hire a facilities

management company to implement a management operations program at the main campus and the related satellite centers. Services include, but are not limited to, HVAC maintenance, water treatment services, generator maintenance, janitorial services, and lawn care services. The contractor shall provide all supplies, equipment, and skills necessary to complete all services. The contractor will manage any sub-contractors hired to perform non-self-performed tasks as specified in the Request for Proposals (RFP). LSC-North Harris will negotiate with the contractor hourly rates for replacement of staff positions that may become vacant as a result of attrition. In compliance with the provisions of Texas Education Code § 44.031, RFP #306 was advertised and issued to sixty two (62) registered facilities management service providers. A pre-proposal conference was held and nineteen (19) companies were represented. A total of six (6) responses were received. The evaluation of proposals was conducted based on the pricing, firm’s experience, relevant client references, quality of goods and services, past performance of the firm, extent to which certified historically underutilized businesses (HUB), minority and/or veteran or woman-owned businesses are utilized, long term cost, and other relevant factors. The companies with the top proposal evaluation scores were interviewed. It is recommended that the firm with the highest interview evaluation score be awarded the contract for these services. The contract term will be for an initial three-year period with an option to renew for two (2) additional one (1) year options based on mutual consent.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2014-15

operating budget. Funds for subsequent years will be included in future proposed budgets.

Staff Resource: Penny Westerfeld 281-618-5444

Financial Report and Consideration No. 14 (ACTION ITEM 14) Board Meeting 8-7-14 Request: Consideration of Approval to Au thor i z e the Chancellor or

D e s i g n e e to Negotiate and Execute a Contract to Purchase Architectural Services for the LSC-East Aldine Satellite Center (Aldine) Contingent Upon Finalization of Funding

Chancellor’s Recommendation:

That the Board of Trustees authorizes the Chancellor or designee to negotiate and execute a contract for the purchase of architectural services for Aldine, contingent upon finalization of funding, with the highest ranked firm, Bay-IBI Group Architects, 455, East Medical Center Boulevard, Suite 500, PO Box 891209, Houston TX 77289. If negotiations cease for any reason with the 1st ranked firm, the System will proceed to negotiate with the 2nd ranked firm, Gensler.

Rationale: The proposed satellite center is estimated to be 60,000 square feet and

will provide workforce and academic preparation in an underserved community. The proposed site is along Aldine Mail Route, east of Aldine Westfield Road and is large enough to accommodate expansion if necessary in the future. The East Aldine Management District (economic development organization for the Aldine area) will donate approximately 16 acres to the System for the center. In compliance with the provisions of Texas Government Code 2254.004, a Request for Statement of Qualifications (RFQ #326) was publicly advertised and issued to one hundred and fifty (150) firms. A pre-proposal conference was held and thirty one (31) firms were represented. Twenty-two architectural firms subsequently responded to the RFQ. The initial evaluation of proposals was conducted based on the firm’s qualifications, references and relevant higher education experience, approach and methodology, experience of proposed personnel, extent to which certified historically underutilized businesses (HUB), minority and/or veteran or woman owned businesses are utilized and the completeness and thoroughness of the response. On-site presentations were made by the five (5) firms receiving the highest proposal scores. It is recommended that the firm with the highest on-site presentation score be awarded the contract for architectural services.

Fiscal Impact: Funds for this purchase are anticipated from the Federal New Markets

Tax Credit Program. Staff Resource: Cindy Gilliam 832-813-6512 Steve Head

832-813-6515

Financial Report and Consideration No. 15 (ACTION ITEM 15) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Additional Architectural Services

for LSC-University Park (LSC-UP) Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of additional architectural services in the amount of $250,000, bringing the total not-to-exceed amount for these services over the three year period to $1,750,000.

Rationale: A registered architect must prepare plans and specifications for any

alteration or addition to an existing building owned by the System when the construction costs exceed $50,000 and the alteration or addition requires removal, relocation, or addition of any walls or an exit. In addition, local jurisdictions require the approval of sealed and signed architectural plans before issuing building permits. At LSC-UP, renovations are required as educational and corporate tenants contract with LSC for space, and to accommodate future growth at the campus. On May 3, 2012, the Board of Trustees approved the purchase of architectural services for LSC-UP in the amount of $1,500,000 for a three year period. There have been more projects requiring architectural services than anticipated. The additional funds requested will allow the construction staff to undertake projects for the remaining term of the contract. The original purchase was in compliance with the provisions of Texas Government Code 2254.003 using Request for Statement of Qualifications #175.

Fiscal Impact: Funds for tenant related projects are available from auxiliary funds. Other

projects will be funded from operating budgets or bond funds, as appropriate. Funds for subsequent years will be included in future proposed budgets.

Staff Resource: Cindy Gilliam 832-813-6512

Financial Report and Consideration No. 16 (ACTION ITEM 16) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Additional Architectural Services

for Renovation Projects Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of additional architectural services for renovation projects in the amount of $400,000, bringing the total not-to-exceed amount for these services over the three year period to $1,000,000.

Rationale: A registered architect must prepare plans and specifications for any

alteration or addition to an existing building owned by the System when the construction costs exceed $50,000 and the alteration or addition requires removal, relocation or addition of any walls or an exit. In addition, local jurisdictions require the approval of sealed and signed architectural plans before issuing building permits. On May 3, 2012, the Board of Trustees approved the purchase of architectural services for renovation projects in the amount of $600,000 for a three year period. There have been more renovation projects throughout the system requiring architectural services than anticipated. The additional funds requested will allow the construction staff to undertake projects for the remaining term of the contract. The original purchase was in compliance with the provisions of Texas Government Code 2254.003 using Request for Statement of Qualifications #184.

Fiscal Impact: Funds for these services are available from the approved budgets of the

Repairs and Replacements, Operating and Construction funds. Funds for subsequent years will be included in future proposed budgets.

Staff Resource: Cindy Gilliam 832-813-6512

Financial Report and Consideration No. 17 (ACTION ITEM 17) Board Meeting 8-7-14 Request: Consideration of Approval of Annual Purchases of Construction and

Related Services for the System Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of construction and related services for the System in an amount not-to-exceed $10 million in FY 2014-15. In addition, authorize the Chancellor or designee to negotiate and execute any contracts related to these purchases.

Rationale: This pre-approval of annual purchases of construction and related

services for renovation, minor construction, bond and repair and replacement (R&R) projects is necessary to respond expeditiously to construction requirements for projects with specific scheduling constraints, or which may develop into an emergency if delayed. Approving the purchase of construction and related services in advance will enable staff to address schedule constraints and meet project delivery deadlines. The purchase of these services will be made in accordance with 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. This request seeks approval for individual construction and related services purchases from $100,000 up to $750,000, and authorization to make collective purchases not-to-exceed $10 million in FY 2014-15. Purchases exceeding $750,000 will be presented to the Board individually for consideration of approval. To ensure the Board is regularly updated regarding the status of purchases made under this request, a project summary will be included in the Building and Grounds report each quarter.

Fiscal Impact: Funds for these purchases are included in the recommended FY 2014-15

operating, auxiliary, R&R and bond fund budgets. Staff Resource: Cindy Gilliam 832-813-6512

Financial Report and Consideration No. 18 (ACTION ITEM 18) Board Meeting 8-7-14 Request: Consideration of Approval of Annual Purchases of Technology Hardware,

Software and Services Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of technology hardware, software and services in an amount not to exceed $15,000,000 in FY 2014-15. In addition, authorize the Chancellor or designee to execute any agreements or statements of work related to these purchases.

Rationale: To enhance student success, LSCS 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 required consulting services. Over the last six fiscal years, this approach for technology purchases was able to save the college system 30% off the already negotiated cooperative purchasing program’s contract prices. Approving the technology hardware, software and services in advance will dramatically improve project schedules. In addition, the use of the various procurement methods for these purchases will enable faculty, students and staff to receive updated technology in the most timely and cost-effective method. The purchase of technology hardware, software and services will be made in accordance with:

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

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

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

To ensure the Board continues to have visibility of the technology purchases made under this request, a brief summary of purchases and savings will be submitted on a regular basis.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2014-15

operating, technology and bond fund budgets. Staff Resource: Link Alander 832-813-6832

Financial Report and Consideration No. 19 (ACTION ITEM 19) Board Meeting 8-7-14 Request: Consideration of Approval to Renew Annual Insurance Policies for Fiscal

Year 2014-15 and Agreements for the Administration of Student Liability and Medical Insurance

Chancellor’s Recommendation:

That the Board of Trustees approves the renewal of the annual insurance policies for fiscal year 2014-15 with estimated premiums totaling $2.4 million, and the agreements for the administration of student liability and medical insurance.

Rationale: The System’s current insurance policies provide comprehensive liability,

property and casualty coverage. The System 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 following insurance policies for the period September 1, 2014 through August 31, 2015. In addition, a summary of all recommended policies is attached. SYSTEM-WIDE COVERAGE (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 $126.9 thousand, an increase of $4.9 thousand (4%) 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 $215.8 thousand, an increase of $16 thousand (8%) over the current premium. The increase is due to a rate increase, the number of

claims paid, as well as an increase in the number of employees covered under the policy. (RENEWAL) Excess Liability The policy, provided by the current and recommended carrier United Educators Risk Retention Group, Inc. (UE), provides up to $5,000,000 of coverage for claims in excess of the primary General Liability, Automobile Liability and Employer’s Liability policy limits. The annual premium is $115.3 thousand, an increase of $4.4 thousand (4%) 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 $18 thousand premium will not increase. (RENEWAL) Automobile Liability (Private Passenger & Light Commercial Vehicles) and Automobile Liability (Truck Driving Academy 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 Truck Driving Academy at LSC-North Harris. The automobile liability coverage provides a $1,000,000 combined single limit for bodily injury, property damage, and damage to rental vehicles. The collision and comprehensive coverage provides actual cash value of the property subject to a $1,000 deductible per occurrence. TPS is a joint self-insurance fund and the System will enter into an interlocal agreement with TPS to participate in the fund’s plan. The System’s portion of funding for the program is $145.9 thousand, an increase of $1 thousand (1%) over the current premium. The increase is due to an increase in the number of vehicles covered under the plan. (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 $524.3 thousand, an increase of

$17 thousand (3%) over the current premium. The increase in premium is due to an increase in the number of employees covered under the plan. (RENEWAL) Property (Fire & Extended Coverage) & Equipment Breakdown (Boiler & Machinery) The policy, provided by the current and recommended carrier Liberty Mutual Fire Insurance Company, provides coverage for the System’s real and personal property valued at approximately $1.1 billion, subject to a cumulative deductible for each occurrence of $25,000 for fire, $100,000 for flood, $100,000 for earth movement, $25,000 for breakdown of heating, air conditioning and electrical equipment and 2% of the value of covered property for wind damage associated with a named storm. This policy is subject to a $500,000,000 Real Property Loss Limit for any one occurrence. The sub-limit for extra expense coverage is $10,000,000. The annual premium is $1.2 million, a decrease of $46 thousand (-4%) over the current premium. (RENEWAL) Inland Marine The policy, provided by the current and recommended carrier Hanover Insurance Company, provides physical damage coverage for the actual cash value of scheduled mobile equipment subject to a $1,000 deductible per occurrence. The annual premium is $9.8 thousand, an increase of $3 thousand (46%) over the current premium. The premium increase is due to the increase in the quantity of equipment covered and the change in the valuation clause from actual cash value to replacement cost. (RENEWAL) Fine Arts & Small Museums The policy, provided by the current and recommended carrier ACE Fire Underwriters Insurance Company, provides coverage for fine art exhibitions at campus galleries with a limit of $500,000 for each loss. With the exception of outdoor sculptures, the deductible is $1,000 per claim. Outdoor sculptures have a $2,500 deductible. The current $1.1 thousand premium will not increase. (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 annual premium is $11.6 thousand, a decrease of $4.4 (-28%) over the current premium. This decrease in premium reflects an increase in the deductible since there has not been any claim activity since 2004.

(RENEWAL) Foreign Travel Policy The recommended carrier, ACE American Insurance Company, provides a general liability policy of $1,000,000 for each occurrence of bodily injury and property damage with a $2,000,000 general aggregate limit. Coverage includes $1,000,000 for contingent automobile liability, $50,000 for hired automobile physical damage; $1,000,000 for voluntary compensation benefits, $1,000,000 coverage for executive assistance services, $100,000 coverage for accidental death & dismemberment, and $25,000 coverage for medical expenses. The annual premium is $4.7 thousand, an increase of $1.7 hundred (4%) over the current premium. The premium increase is due to an increase in rates. (RENEWAL) Kidnap and Ransom Insurance Policy The 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 current $5.8 thousand premium will not increase. (RENEWAL) Travel Insurance (Out of the Country Medical Insurance, Study Abroad & Faculty International Explorations) The recommended carrier, ACE USA American Insurance Company, provides coverage for primary accident & sickness, emergency medical evacuation, repatriation of remains, emergency reunion, accidental death & dismemberment and 24-hour international emergency assistance for students, faculty and staff traveling outside the United States for study abroad or other educational purposes. The plan is administered by Academic Health Plans (AHP). The limit for accident or sickness expense benefits is $250,000 with no deductible per covered accident or sickness. The annual premium is $6.9 thousand, a decrease of $5 hundred (-7%) over the current premium. STUDENT COVERAGE Policies are made available to students that provide medical professional liability insurance for participation in health occupation internships, health insurance for international students on F-1 visas, and health insurance for student interns when required by an affiliation agreement. Premiums for sponsored study-abroad programs are paid from the System’s approved budgets. Students desiring to participate in one or more of the other available insurance programs remit payment when registering for class(es). Student premium collections are forwarded to the appropriate agent, broker, or insurance carrier. It is recommended that the Board approve the following products for students:

(RENEWAL) Medical Professional Liability 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 $12 premium per student is a decrease of $5 (42%) over the current per student premium. (RENEWAL) Medical Insurance (International Students on F-1 Visas and Student Interns) The current and recommended carrier, ACE American Insurance Company, provides in-patient and out-patient medical expense benefits for injury and sickness with a limit of $500,000 per covered person per policy year. Students attending LSCS on F-1 Visas are required to have medical insurance. In addition, the majority of the System’s health occupations affiliation partners require student interns to carry medical insurance in order to participate in the program. The plan is administered by Academic Health Plans (AHP). The annual health insurance premium is $1.6 thousand, an increase of $1 hundred (6%) over the current premium.

Fiscal Impact: Funds for insurance policy premiums paid by the System are included in

the recommended FY 2014-15 System budgets. Staff Resource: Cindy Gilliam

832-813-6512

Financial Report and Consideration No. 20 (Agenda Item 20) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Printing and Mailing Services,

Including Postage, for the Star and Silver Star Newsletters Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of printing and mailing services, including postage, for the Star and Silver Star newsletters for an annual amount of $185,00 and a total of $924,000 over five years from the vendors listed below. Trend Offset Printing $83,000 Printing Services Premier IMS $28,000 Mailing Services United States Postal Service $74,000 Postage

Rationale: The twelve-page Star newsletter is mailed in March and September and

provides a source of information about LSCS activities to all System residents and taxpayers. The eight-page Silver Star newsletter is mailed in October to residents age 65 and older in LSCS’s service area and addresses topics specific to those stakeholders. Mailing services include providing updated residence counts for each zip code, and preparing, packaging and delivering the newsletters to the post office. The annual postage cost is based on a non-profit periodical rate. This purchase is in compliance with the provisions of Texas Education Code 44.031 (a). A Request for Proposals (RFP #313) was publically advertised and issued to nineteen registered print and mail bidders and four responses were received. Bidders were evaluated based on qualifications and experience, services meeting System needs, references, quality of services, the extent to which certified historically underutilized businesses (HUB), minority and/or veteran and women owned businesses are utilized, long-term cost to the System and other relevant factors. It is recommended that the purchase be awarded to the bidder with the highest proposal evaluation score for each service. See attached proposal evaluation tabulation. The term of the award will be for a period of three years beginning August 2014, with the option to renew for two additional one-year terms at LSCS’s discretion and with mutual consent.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2014-15

operating budget. Funds for subsequent years will be included in future proposed budgets.

Staff Resource: Ray Laughter 832-813-6621

Financial Report and Consideration No. 21 (ACTION ITEM 21) Board Meeting 8-7-14 Request: Consideration of Approval to Authorize the Chancellor or Designee to

Negotiate and Execute a Contract for the Purchase of System-Wide On-Demand Tele-Med Health Care Access Services for Employees

Chancellor’s Recommendation:

That the Board of Trustees authorizes the Chancellor or designee to negotiate and execute a contract for system-wide on-demand tele-med health care access services for employees from AmeriDoc, LLC, 14785 Preston Road, Suite 935, Dallas, Texas 75254, in an estimated annual amount of $350,000 for a total estimated cost of $1,050,000 over three years.

Rationale: LSCS is in need of a technology platform that can securely connect

employee/patients with U.S. based, board certified physicians for medical consultations via telephone, secure video, and secure e-mail. AmeriDoc physicians are available 24/7/365 to diagnose many common conditions and recommend treatment plans including non-controlled prescription medication as necessary. These services will be offered to employees and their families at no cost to them, can be accessed from anywhere in the U.S. and are expected to significantly reduce employee health care costs. AmeriDoc provides these services to numerous governmental entities in Texas and in the U.S and is known for its outstanding customer service. LSCS will be the first community college in Texas to provide these services to its employees. Participation rates are high for this program at 37% to 50% versus the industry average of 20% to 25%. This purchase is in compliance with the requirements of Texas Education Code 44.031 (a, 4) which allows the use of inter-local contracts. The purchase of AmeriDoc’s tele-med services is being conducted through the Texas Cooperative Purchasing Network (TCPN) contract #R132005. Once the agreement is signed with AmeriDoc, a letter will be distributed to all employees explaining the program with instructions regarding how to utilize the service. The employee will be asked to provide some initial information regarding their health history prior to receiving the service, but this is a simple process that can be done at the time the first service request is made. The commitment of System time and resources to implement these services is minimal. Responsible staff will be required to complete a one page implementation form and send employee enrollment information initially with monthly updates thereafter. The contract will be in effect until terminated by either party with 60 days’ written notice.

Fiscal Impact: Funds for this purchase are included in the recommended FY 2014-15

operating budget. Funds for subsequent years will be included in future proposed budgets.

Staff Resource: Cindy Gilliam 832-813-6512

Financial Report and Consideration No. 22 (ACTION ITEM 22) Board Meeting 8-7-14 Request: Consideration of Approval to Purchase Access Control Card Readers for

LSC-CyFair Chancellor’s Recommendation:

That the Board of Trustees approves the purchase of access control card readers for LCS-CyFair from Stanley Convergent Security Solutions, 6699 Portwest Road, #100 Houston, TX 77024, in the amount of $241,250.

Rationale: LSCS has equipped each of its campus facilities with access control card

readers to promote safety of staff, faculty, and students. LSC-CyFair has inventoried each building and identified several that do not meet the new safety security standard for card reader systems adopted by the System.

The contractor will be responsible for designing, furnishing, installing and commissioning an access control system for LSC-CyFair’s buildings. This purchase is in compliance with the Texas Education Code §44.031 (a, 4) which allows the use of inter-local contracts. The purchase from Stanley Convergent Security Solutions is being conducted through the Texas Multiple Award Schedule (TMAS) purchasing cooperative contract No. 78-84080.

Fiscal Impact: Funds for this purchase are available from the approved FY 2013-14

operating budget. Staff Resource: Audre Levy 281-290-3941

Building and Grounds Report Board Meeting 8-7-14 Report: Construction Projects Update

The District’s Facilities Planning and Construction Department has provided a

summary report of the District’s construction projects. See attached report.

Monthly Facilities Planning and Construction Report August 7, 2014

2013 Revenue Bond Project Summary

LSC-Creekside Satellite Center ♦ The Construction Manager at Risk has secured sub-contractor bids for the project and

the Guaranteed Maximum Price will be presented at the September Board of Trustees meeting for approval.

LSC-Fairbanks Center - Parking Garage Addition ♦ Precast concrete erection is complete with finishes and final connections currently

underway. The garage will be open for parking on schedule for the fall semester.

LSC-CyFair - Parking Lot Addition ♦ Construction is underway and is scheduled to be complete in time for the fall

semester.

LSC-CyFair - Renovations ♦ Construction of the photography/darkroom studio is underway and is scheduled to be

complete in time for fall semester.

LSC-University Park – Central Plant Upgrade ♦ Installation and commissioning of the new equipment is expected to be completed by

the end of August.

LSC-System Office – HVAC System Upgrades ♦ The bidding process commenced in July and a contractor will be selected in August.

Construction will be scheduled to occur over extended weekends and holiday periods since the air conditioning in the buildings will be impacted.

LSC-System Office – Community Building Office Renovations

♦ Construction documents have been completed and the bidding process is underway. Contractor selection will be finalized in early August.

2014 Federal New Markets Tax Credit Program Project Summary

LSC-East Aldine Satellite Center ♦ Architectural design firms have been interviewed and a recommendation is included

as an August Board of Trustees agenda item. ♦ A request for proposals (RFP) for Construction Manager at Risk services has been

issued. Shortlisted firms have been interviewed and a recommendation will be made at the September Board of Trustees meeting for consideration of approval.

♦ A request for qualifications (RFQ) for geotechnical firms has been issued. A recommendation will be presented at the September Board of Trustees meeting for consideration and approval.

Personnel Report and Consideration No. 1 (ACTION ITEM 23) Board Meeting 8-7-14 Request: Consideration of Ratification of Appointments.

Chancellor’s Recommendation:

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

Rationale:

These contractual appointments include ratification of Administrators and Faculty from LSC–North Harris, LSC-Montgomery, LSC-System Office and LSC-Tomball

Fiscal Impact:

Positions and salaries have been budgeted for 2013-2014.

Staff Resource: Rand Key 832-813-6522

a. LSC–North Harris

Crystal Allen, Assistant Professor, Education Effective: 12 month contracted employee at an annual salary of $17,723 beginning

June 1, 2014 Education: Ph.D., Higher Education Administration, Texas A&M College; M.A.,

Organization Management, University of Phoenix; B.S., Health, Prairie View A&M

Experience: Adjunct Professor, Human Development, LSC–North Harris; Adjunct

Professor, Education Administration, Senior University Recruiter, Assistant to Dean, Recruitment and Retention, Prairie View University; Enrollment Counselor & Academic Advisor, University of Phoenix

Daria Willis, Dean, Instruction Effective: 12 month contracted employee at an annual salary of $86,192 beginning

June 16, 2014 Education: Ph.D., Philosophy, Florida State University; M.S., History, B.A., History

Education Florida A&M University Experience: Associate Professor, History, LSC-University Park; Adjunct Instructor,

History, African American Studies, Florida A&M University; Adjunct Instructor, History, Tallahassee Community College; Task Force, African American History, State of Florida; Training Facilitator, Clara White Museum, Florida African American Heritage Preservation; Tutor, CARE PROGRAM, Florida State University; Museum Education Program Representative, Museum of Florida History

b. LSC–Montgomery

Brandy Harvey, Dean, Instruction Effective: 12 month contracted employee at an annual salary of $86,192 beginning

June 1, 2014 Education: Ph.D., M.A., English, University of Louisiana; B.S., English, University

of Southern Mississippi Experience: Instructor, English, Nicholls State University; Adjunct Instructor, English,

L. E. Fletcher Technical Community College; Secondary English Educator, Diocese of Houma; Middle School Educator, Lafourche Parish Schools

c. LSC–Tomball

Ronnie Pickard, Executive Director, College Relations Effective: 12 month contracted employee at an annual salary of $84,502 beginning

June 23, 2014 Education: B.S., Finance, Louisiana Tech University Experience: Manager, Marketing and Corporate Communications, Service Corporation

International; Director, Strategic Communications, Director, Community & Business Affairs, Houston Airport System; Director Marketing & Air Service Development, Baton Rouge Metropolitan Airport; Director, Strategic Communications & Public Relations, Knight Broadcasting; Managing Director, Public Affairs & Media Relations, Calzone & Associates; Director, Public Relations & Media Advisor, State of Louisiana – Office of Lieutenant Governor

d. LSC–System Office

William Dodd, Director, Purchasing Effective: 12 month contracted employee at an annual salary of $95,170 beginning

June 16, 2014 Education: B.S.B.A., McNeese State University Experience: Director, Purchasing and Records Management, University of Texas; Site

Director, Materials, Trico Technologies, Procurement Manager, Flextronics; Materials Director, Purchasing Manager, Input/Output, Inc.

Personnel Report and Consideration No. 2 (ACTION ITEM 24) Board Meeting 8-7-14 Request:

Consideration of Resignations

Chancellor’s Recommendation:

That the resignations listed below be accepted and acknowledged. LSC – CyFair James Brown, Professor, Political Science Effective May 1, 2014 Feleccia Moore Davis, VP, Instruction Effective August 31, 2014 LSC – Kingwood Kathleen Atkins, Director, Advising/Counseling Effective May 16, 2014 LSC – North Harris Janice Hemphill, Professor, AD Nursing Effective June 1, 2014 Elizabeth King, Professor, AD Nursing Effective June 1, 2014 Judith King, Professor, AD Nursing Effective July 1, 2014 LSC – Montgomery Kris Chapman, Professor, Music Effective June 23, 2014 LSC - System Office Marla Diers, Sr. HR Manager Effective May 15, 2014 LSC – University Park Thomas Rogers, Assistant Professor, Sociology Effective June 1, 2014 Jessica Weisel, Professor, Speech Effective May 31, 2014

Staff Resource:

Rand Key 832-813-6522

Personnel Report and Consideration No. 3 (ACTION ITEM 25) Board Meeting 8-7-14 Request: Consideration of Approval of Commissioning of Peace Officers Chancellor’s That the Board of Trustees approves the commissioning of the following Recommendation: peace officers for the Lone Star College System.

Lone Star College–Kingwood

Stephen M. Holle

Lone Star College–North Harris

Joe D. Love

Lone Star College–University Park

Patricia G. Vidito

Rationale: These officers are eligible to be commissioned by this Board because they:

1. Have a current license from the Texas Commission on Law Enforcement Officer Standards and Education;

2. Have taken and filed the oath required of peace officers; and 3. Possesses a sufficient number of college credit hours to meet the

minimum standard for a Lone Star College System peace officer. Fiscal Impact: None Staff Resource: Rand Key 832-813-6522