minutes of the workshop and regular meeting of … 2 7 minutes of the... · chair, art murillo,...

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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 February 7, 2019

5:00 p.m.

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

Trustees to order at 5:00 p.m. after determining that a quorum was present.

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

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

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

IV. CLOSED SESSION: At 5:02 p.m. Dr. Smith convened the Board in closed session, in accordance with Section 551.001 et seq. of the Texas Government Code under one or more of the following provision(s) of the Act:

Section 551.071 – Consultation with Attorney

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

Section 551.072 – Deliberation Regarding Real Property • LSC-University Park, LSC-CyFair, LSC-North Harris, LSC-

Tomball, LSC–Montgomery, LSC-Kingwood, LSC-System Office, Future Land Purchases

Section 551.074 - Personnel Matters

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Section 551.076 – Deliberation Regarding Security Devices Mr. Vogt entered the meeting at 5:07 p.m.

V. RECONVENE REGULAR MEETING: Dr. Smith reconvened the open meeting at 6:03 p.m.

VI. INTRODUCTIONS, SPECIAL GUESTS AND RECOGNITIONS: Dr. Head introduced Jane Stueckemann with the Houston Chronicle. Ms. Linda Head, senior associate vice chancellor, division of external and employer relations introduced Dr. Eric Roe, executive director of the UT-Austin Texas engineering executive education program at UT-Austin’s Cockrell School of Engineering. Dr. Roe discussed the collaborative relationship with Lone Star College Corporate College and Lone Star College Small Business Development Center to provide training and consulting services to help meet workforce needs and assist with company growth. Dr. Quentin Wright, vice chancellor and special assistant to the chancellor gave a brief overview of the proposed LSC-Fallbrook Center and partnership with Fallbrook Church. Dr. Wright discussed the proposed facility, enrollment projections and proposed programs. Senior Pastor Michael Pender, Pastor Olus Holder and Pastor George Flowers from Fallbrook Church were present to answer questions.

VII. WORKSHOP: PSSA (Professional Support Staff Association) presidents from each campus gave a presentation about what PSSA is doing on each campus to help promote community among employees, inspire professional growth, further the strategic goals and objectives of LSC’s cultural beliefs and provide an avenue for staff to bring concerns to the administration. The PSSA presidents are: Anabell Hernandez, LSC-SOUP; Nick Brown, LSC-SO-The Woodlands; Sarah Zapata, LSC-CyFair; Allison Huffy, LSC-Kingwood; Tabitha Yargo, LSC-Montgomery; Michelle Simon, LSC-North Harris; Lynda Bancroft, LSC-Tomball and Kerrah Cain, LSC-University Park.

VIII. APPROVAL OF THE MINUTES OF THE DECEMBER 6, 2018 WORKSHOP AND REGULAR MEETING AND THE JANUARY 18, 2019 BOARD BUDGET RETREAT MEETING: upon a motion by Mr. Sullivan and a second by Ms. Saldívar, the board approved the minutes of the December 6, 2018 Workshop and Regular Meeting. Upon a motion by Mr. Murillo and a second by Mr. Vogt the board approved the minutes of the January 18, 2019 Board Budget Retreat.

IX. SPECIAL REPORTS AND ANNOUNCEMENTS:

1. Chancellor: Dr. Head announced that LSC-Kingwood will have its Grand Reopening Ceremony on Friday, February 15, 2019 at 9 a.m.

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The annual Chancellor’s Breakfast, to honor scholarship endowment donors, will take place on Tuesday, February 26, 2019 at 7:30 a.m. in the community building at The Woodlands location. Six student essay winners will read their essays. The Employee Awards Banquet will be held on February 1, 2019 at 11 a.m. at the Marriott Waterway.

2. College Presidents: Gerald Napoles, president of LSC-North Harris, gave a presentation entitled “Welcome Back to Lone Star College” highlighting activities held at all campuses to welcome students back to school for the spring semester.

3. Vice Chancellors: None.

4. Faculty Senate Presidents: Devethia Guillory, faculty senate president, LSC-North Harris, gave a presentation on The Honors College Undergraduate Research.

5. Board Members: Ms. Ernestine Pierce spoke about the MABAH Leadership Mentor

program she is involved in that is sponsored by the Mexican-American Bar Association of Houston.

Dr. Smith attended the January 11th Westway Park Center dedication and the January 25th Texas Workforce Commission check presentation to provide training for workforce. Dr. Smith also attended the Greater Houston Partnership luncheon where Dr. Head was selected to be on their board of directors. Dr. Smith was invited by Dr. Patrick Gilbert, political science professor at LSC-Tomball, to participate in a video production for Black History month discussing education along generational lines. Dr. Smith was elected to the board of directors for the American association of Community Colleges (ACCT). At the recent meeting in Washington, D.C., the ACCT board discussed the legislative agenda they endorse and will push at the national level. Dr. Smith appointed board members to the following committees: Policy Review Committee – Myriam Saldivar, Chair, Ken Lloyd, Ernestine Pierce; Audit Committee – Mike Sullivan, chair, David Vogt, Ken Lloyd; Finance Committee – Mike Sullivan, chair, David Vogt, Ken Lloyd; Grievance Committee – Linda Good, chair, Art Murillo, Ernestine Pierce; Education and Workforce Committee – Art Murillo, chair, Michael Stoma, Linda Good; Chancellor Evaluation Committee – David Vogt, chair, Mike Sullivan, Alton Smith.

X. CITIZEN PARTICIPATION: Mr. Alan Hall representing AFT announced the AFT sponsored scholarship winner, Ms. Boping Liang. Ms. Liang was present and read her winning essay.

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Mr. Stuart Schroeder representing the Boy Scouts of America presented the 2018 Spirit of Scouting Award to Lone Star College.

XI. CONSIDERATION OF THE CONSENT AGENDA: Chair Smith proceeded with the Consent Agenda. Item #9 was pulled from the agenda to be voted on separately. Mr. Sullivan made a motion to approve Action Items 1, 2, 3, 4, 5, 6, 7, 8, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21. Ms. Saldívar seconded the motion and the Board unanimously passed the Consent Agenda. A copy is attached as Exhibit “B”.

XII. POLICY REPORTS AND CONSIDERATIONS:

1. Consideration and Review of the Recommended Revision of the Lone Star College (the

“College”) System Board Policy Manual Section II.L. Marketing and Branding (FIRST READING): the Board of Trustees considered and reviewed the proposed revision of the College’s Board Policy Manual Section II.L. Marketing and Branding Policy. A copy is attached as Exhibit “C”.

2. Consideration and Review of the Lone Star College (the “College”) System Board Policy Manual Section III.C.2. Investment Management (FIRST READING): the Board of Trustees considered and reviewed the College’s Board Policy Manual Section III.C.2. Investment Management. A copy is attached as Exhibit “D”.


“College”) Board Policy Manual Section VI.A. Admissions Policy to include subsection VI.A.2.1. Health Occupation Programs Admission Policy (FIRST READING): the Board of Trustees considered and reviewed revisions to the College’s Board Policy Manual Section VI.A. Admissions Policy to include subsection VI.A.2.1. Health Occupation Programs Admission Policy. A copy is attached as Exhibit “E”.


“College”) System Board Policy Manual Section VI.B.2.01. Installment Payment Plans (FIRST READING): the Board of Trustees considered and reviewed the revision of the College’s Board Policy Manual Section VI.B.2.01. Installment Payment Plans. A copy is attached as Exhibit “F”.

XIII. CURRICULUM REPORTS AND CONSIDERATIONS:

1. Consideration of Approval of the Lone Star College (the “College”) Core Curriculum

for the 2019-2021 Academic Years (ACTION ITEM 1): the Board of Trustees approved the revised core curriculum for the 2019-2021 academic years. This item was passed in the Consent Agenda. A copy is attached as Exhibit “G”.

2. Consideration of Approval to Expand the Lone Star College (the “College”) Mechatronics Technician Associate of Applied Science (“AAS”) Degree and Level 2 Certificate to Lone Star College-North Harris (“LSC-North Harris”) ACTION ITEM 2: the Board of Trustees approved expanding the Mechatronics Technician AAS

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Degree and Level 2 Certificate to LSC-North Harris beginning in Fall 2019. This item was passed in the Consent Agenda. A copy is attached as Exhibit “H”.

3. Consideration of Approval to Expand the Lone Star College (the “College”)

Mechanical Design Technology Associate of Applied Science (“AAS”) Degree and Computer Aided Design Operator/Drafting Level 1 Certificate to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New Branch Campus ACTION ITEM 3): the Board of Trustees approved expanding the Mechanical Design Technology AAS Degree and Computer Aided Design Operator/Drafting Level 1 Certificate to LSC-Houston North. This item was passed in the Consent Agenda. A copy is attached as Exhibit “I”.

4. Consideration of Approval to Expand the Lone Star College (the “College”) Logistics

Management Associate of Applied Science (“AAS”) Degree and First Line Logistics Leader Level 1 Certificate to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New Branch Campus (ACTION ITEM 4): the Board of Trustees approved expanding the College’s Logistics Management AAS Degree and First Line Logistics Leader Level 1 Certificate to LSC-Houston North beginning in Fall 2019. This item was passed in the Consent Agenda. A copy is attached as Exhibit “J”.

5. Consideration of Approval to Expand the Lone Star College (the “College”)

Mobile/Web Application Development Associate of Applied Science (“AAS”) Degree to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New Branch Campus (ACTION ITEM 5): the Board of Trustees approved expanding Mobile/Web Application Development AAS Degree to LSC-Houston North beginning in Fall 2019. This item was passed in the Consent Agenda. A copy is attached as Exhibit “K”.

6. Consideration of Approval to Expand the Lone Star College (the “College”’) Heating,

Ventilation, Air Conditioning and Refrigeration (“HVAC) Associate of Applied Science (“AAS”) Degree, HVAC Occupational Entry Certificate, HVAC Commercial Servicing Level 1 Certificate, and HVAC Residential Servicing Level 1 Certificate to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New Branch Campus (ACTION ITEM 6): the Board of Trustees approved expanding the College’s HVAC AAS Degree, HVAC Occupational Entry Certificate, HVAC Commercial Servicing Level 1 Certificate, and HVAC Residential Servicing Level 1 Certificate to LSC-Houston North beginning in Fall 2019. This item was passed in the Consent Agenda. A copy is attached as Exhibit “L”.

7. Consideration of Approval Expanding the New Lone Star College (the “College”)

Welding Associate of Applied Science (“AAS”) Degree, Gas Metal Arc Welding Level 1 Certificate, Gas Tungsten Arc Welding Level 1 Certificate, Pipe Welding Level 1 Certificate, and Shielded Metal Arc Welding Level 1 Certificate to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New

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Branch Campus (ACTION ITEM 7): the Board of Trustees approved expanding the Welding Associate of AAS Degree, Gas Metal Arc Welding Level 1 Certificate, Gas Tungsten Arc Welding Level 1 Certificate, Pipe Welding Level 1 Certificate, and Shielded Metal Arc Welding Level 1 Certificate to LSC-Houston North beginning in Fall 2019. This item was passed in the Consent Agenda. A copy is attached as Exhibit “M”.

8. Consideration of Approval to Expand the Lone Star College (the “College”) Human

Services Substance Abuse Counseling Associate of Applied Science (“AAS”) Degree and Basic Chemical Dependency Counselor Level 1 Certificate to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New Branch Campus (ACTION ITEM 8): the Board of Trustees approved expanding the College’s Human Services Substance Abuse Counseling AAS Degree and Basic Chemical Dependency Counselor Level 1 Certificate to LSC-Houston North beginning Fall 2019. This item was passed in the Consent Agenda. A copy is attached as Exhibit “N”.

XIV. FINANCIAL REPORTS AND CONSIDERATIONS:

1. Consideration of Approval of a Resolution to Authorize the Imposition of an Additional Penalty of 20% of the Delinquent Tax, Penalty, and Interest Owed to Lone Star College System (the “College”) on Real Property and Tangible Personal Property in Harris, Montgomery, and San Jacinto Counties (ACTION ITEM 9): upon a motion by Dr. Smith and a second by Mr. Murillo the Board of Trustees approved the resolution to authorize the imposition of an additional penalty of 20% of the delinquent tax, penalty, and interest owed to the College on real property and tangible personal property in Harris, Montgomery, and San Jacinto counties for a consecutive five-year period beginning in Tax Year 2018. A copy is attached as Exhibit “O”.

2. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Easements and Agreements on Behalf of Lone Star College (the “College”) Related to 0.8549 Acres of College Property Located on the South Side of West Road, West of Barker Cypress Road, Cypress, Harris County, Texas 77433 (ACTION ITEM 10): the Board of Trustees authorized the Chancellor or designee to negotiate and execute various easements and agreements on behalf of the College related to 0.8549 acres located on the south side of West Road, west of Barker Cypress Road, Cypress, Harris County, Texas 77433 in order to provide utilities, water, and sanitary sewer. This item was passed in the Consent Agenda. A copy is attached as Exhibit “P”.

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

Execute Contracts on Behalf of Lone Star College (the “College”) to Purchase Facilities Management Services Programs for Lone Star College-North Harris (“LSC-North Harris”) and Related Satellite Centers (ACTION ITEM 11): the Board of Trustees authorized the Chancellor or designee to negotiate and execute contracts on behalf of the College to purchase facilities management services programs for LSC-North Harris, related satellite centers, and additional locations from ABM Texas

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General Services, Inc. (“ABM”), 11651 Plano Road, Suite 200 Dallas TX 75243, in a sum not exceeding $20,656,603 over a five-year period, with additional funds for out of scope work services and repairs in a sum not exceeding $1,000,000 for a total sum not exceeding $21,656,603 over a five-year period, and if negotiations cease for any reason with ABM, that the Board of Trustees authorize the Chancellor or designee to negotiate with the next firm in the order of selection ranking with a score of not less than 70 until a contract is executed. This item was passed in the Consent Agenda. A copy is attached as Exhibit “Q”.


Execute an Amendment on Behalf of Lone Star College (the “College”) to Purchase Additional Facilities Management Services for Additional Locations (ACTION ITEM 12): the Board of Trustees authorized the Chancellor or Designee to amend the contract on behalf of the College to purchase additional facilities management services with Jones Lang LaSalle, Inc. (“JLL”), 1400 Post Oak Blvd., Suite 1100, Houston, TX 77056 for a sum not exceeding $550,000 for a revised total sum not exceeding $11,069,000 for a five-year period and to authorize additional locations. This item was passed in the Consent Agenda. A copy is attached as Exhibit “R”.

5. Consideration of Approval to Authorize the Chancellor or Designee to Purchase Additional Voice and Data Communication Cabling Services for Lone Star College (the “College”) (ACTION ITEM 13): the Board of Trustees authorized the Chancellor or designee to purchase additional voice and data communication cabling services for the College in a sum not exceeding $1,000,000 for a revised sum not exceeding $2,500,000 over a five-year period. This item was passed in the Consent Agenda. A copy is attached as Exhibit “S”.

6. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract on Behalf of Lone Star College (the “College”) to Purchase Resume Distribution Services for the Workforce Education Programs (ACTION ITEM 14): the Board of Trustees authorized the Chancellor or designee to negotiate and execute a contract on behalf of the College to purchase resume distribution services from MyOpenJobs, LLC, 12200 Ford Road, Suite 100, Dallas TX 75234 in a sum not exceeding $267,100. The term of this award is for an initial three-year period with the option to renew for two additional one-year periods. This item was passed in the Consent Agenda. A copy is attached as Exhibit “T”.

7. Consideration of Approval to Modify the Language in the Previously Approved

Agenda Item for Additional Design Services with Architectural Firm Rey de la Reza Architects for Lone Star College System Office-University Park (“SO-UP”) (ACTION ITEM 15): the Board of Trustees approved the modification of language in the previously approved agenda item dated November 2, 2017 for the purchase of architectural services from Rey de la Reza Architects (“RdlRA”), 1245 West 18th Street, Houston, Texas 77008 to allow for additional amendments for additional architectural services. This language modification request will not change the

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previously approved sum not exceeding $382,876. This item was passed in the Consent Agenda. A copy is attached as Exhibit “U”.

8. Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract on Behalf of Lone Star College (the “College”) for Additional Construction Services with Brookstone, LP for the Lone Star College-CyFair (“LSC-CyFair”) Westway Park Technology Center (ACTION ITEM 16): the Board of Trustees authorized the Chancellor or designee to amend the contract on behalf of the College for additional construction services with Brookstone, LP, 3715 Dacoma Street, Houston, TX 77092 for the LSC-CyFair Westway Technology Center in a sum not exceeding $200,000, for a revised total sum not exceeding $7,740,000.. This item was passed in the Consent Agenda. A copy is attached as Exhibit “V”.


Execute a Contract Amendment on Behalf of Lone Star College (the “College”) to Purchase Financial Aid File Review and Verification Services (ACTION ITEM 17): the Board of Trustees authorized the Chancellor or Designee to negotiate and execute a contract on behalf of the College to purchase financial aid file review and verification services with Global Financial Aid Services (“Global”), 12268 Intraplex Parkway, Gulfport, MS 39502 for a sum not exceeding $75,000 through April 30, 2019 for a total revised sum not exceeding $345,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “W”.

10. Consideration of Approval to Ratify the Emergency Purchase of Repair Services to

Restore the Hot Water Loop and Heating, Ventilation, and Air Conditioning (“HVAC”) System for Lone Star College-North Harris (“LSC-North Harris”) (ACTION ITEM 18): the Board of Trustees ratified the emergency purchase of repair services to restore the hot water loop and HVAC system for LSC-North Harris with TD Industries Inc., 13850 Diplomat Drive, Dallas, TX 77040 in a sum not exceeding $155,000. This item was passed in the Consent Agenda. A copy is attached as Exhibit “X”.

11. Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute an Interlocal Agreement on Behalf of Lone Star College (the “College”) with the University of Texas Petroleum Extension Service (“UT-PETEX”) (ACTION ITEM 19): the Board of Trustees authorized the Chancellor or designee to negotiate and execute an Interlocal Agreement on behalf of the College with UT-PETEX for the College to lease an area to UT-PETEX at Lone Star College-University Park (“LSC-University Park”). This item was passed in the Consent Agenda. A copy is attached as Exhibit “Y”.


Execute Contracts on Behalf of Lone Star College (the “College”) to Purchase Real Estate and to Negotiate and Execute Agreements and Easements Related to Property for a Future College Location in Harris County, Texas (ACTION ITEM 20): the Board of Trustees authorized the Chancellor or designee to negotiate and execute one or more contracts on behalf of the College to purchase real estate in Harris County,

Certification of Posting of Notice to the February 7, 2019 Workshop and Regular Meeting of the

Lone Star College System’s Board of Trustees

I, Stephen C. Head, Chancellor of the Lone Star College System, do hereby certify that a notice of this meeting was posted on Monday the 4th day of February, 2019 in a place convenient to the public at LSC-System Office The Woodlands, The Woodlands Leadership Building, on all college campuses and on the system website as required by Section 551.002 et seq., Texas Government Code. Special notice of the meeting was provided to the news media as required by Section 551.001 et seq., Texas Government Code.

Given under my hand this the 4th day of February, 2019.

LONE STAR COLLEGE SYSTEM

_____________________ Stephen C. Head

Chancellor

Exhibit "A"

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Consideration of Consent Agenda Board Meeting 2-7-19

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

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

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

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

Tally of Action Items: Chancellor Board

Consent Recommended Separate Agenda Separate Action Action

# 1 – Approve LSC Core Curriculum 2019-2021 ______ ______ ______ # 2 – Approve Mechatronics Tech AAS Lev 2 Cert LSC-NH ______ ______ ______ # 3 – Approve Mech/Design/Tech/AAS/Computer/Draft Cert ______ ______ ______ # 4 – Approve Logistics/Mgmt/AAS/Logistics/Ldr/Cert ______ ______ ______ # 5 – Approve Mobile/Web/App/Development/AAS ______ ______ ______ # 6 – Approve HVAC AAS/HVAC Certifications LSC-HN ______ ______ ______ # 7 – Approve Welding/AAS/Welding Certs/LSC-HN ______ ______ ______ # 8 – Approve Subs/Abuse/Counsel/AAS/Chem/Dep/Cert ______ ______ ______ # 9 – Approve Resolution Add’l 20% Penalty Delinquent Tax ______ ______ ______ #10 – Auth Chan/Exec/Easements 0.8459 Acres West Road ______ ______ ______ #11 – Auth Chan/Exec/Contr/Facilities/Mgmt/Svcs/LSC-NH ______ ______ ______ #12 – Auth Chan/Exec/Purch/Add’l/Facilities/Mgmt Svcs ______ ______ ______ #13 – Auth/Chan/Purch Add’l Voice/Data/Comm/Cable/Svcs ______ ______ ______ #14 – Auth/Chan/Neg/Exec/Purch/Resume/Distribution/Svcs ______ ______ ______ #15 – Approve/Add’l/Design/Svcs/ReydelaReza/Architects ______ ______ ______ #16 – Auth/Chan/Amend/Add’l/Const/Svcs/Brookstone, LP ______ ______ ______

Exhibit "B"

x

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Tally of Action Items: Chancellor Board

Consent Recommended Separate Agenda Separate Action Action

#17 – Auth Chan/Amend/Financial/Aid/Review/Verif/Svcs ______ ______ ______ #18 – Ratify Emerg/Purch/Repair/Svcs/HVAC/LSC-NH ______ ______ ______ #19 – Auth Chan Exec/Interlocal/Agree/UT-PETEX ______ ______ ______ #20 – Auth Chan Purch Real Estate Future Location ______ ______ ______ #21 – Auth Chan Exec/Employment Contracts ______ ______ ______

Policy Report and Consideration No. 1 (FIRST READING) Board Meeting 2-7-19

Request: Consideration and Review of the Recommended Revision of the Lone Star College (the “College”) System Board Policy Manual Section II.L. Marketing and Branding (FIRST READING)

Chancellor’s Recommendation:

That the Board of Trustees consider and review the proposed revision of the College’s Board Policy Manual Section II.L. Marketing and Branding Policy.

Rationale: The proposed revision clarifies and organizes the College’s marketing and branding policies, including revision of the title of Section II.L. to more accurately reflect the nature of the section. This revision also clarifies that the Vice Chancellor for marketing, advertising, and branding is tasked with effectuating this policy.

Fiscal Impact: None.

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

Exhibit "C"

II.L. MARKETING AND BRANDING II.L.1. Advertising Approval II.L.1.01. Authorized Persons Advertising Print, broadcast, Web, mail, and outdoor display advertising may be used as communication to promote the products or services or convey important messages of the College. The Chancellor or designees must approve College advertising. Advertising to recruit faculty and staff will be conducted through Human Resources. Vendor-supplied advertising opportunities may be considered in purchasing practices. The Vice Chancellor responsible for marketing, advertising, and branding (“Vice Chancellor”) shall manage the College’s relationships with advertising agencies and other related providers. II.L.1.02. College Use of Identity and Branding Elements The names, logos, trademarks, and other identifying marks of the College are valuable College assets. As such, these marks may be used by its Foundation, Board of Trustees, colleges and centers only with the express approval of the Vice Chancellor or designee. The College’s logos may be used by any College office for authorized College publications and activities. The official College Branding Styleguide, Digital Styleguide, and Editorial Styleguide outline procedures governing use of identifying marks. The logotypes may not be altered or presented except as outlined in the College styleguides. II.L.1.03. Creation of Branding Elements The creation of branding elements (e.g., slogans, taglines, and logotypes) is the responsibility of the Vice Chancellor or designee. Entities within the College wishing to create branding elements for departments, programs, or events must adhere to the processes outlined in the College style guides. II.L.1.04. Outside Advertising at the College College departments and programs may accept advertising such as the display of commercial logos or slogans at sponsored events, or ads in publications in exchange for fees or services. The College reserves the right to refuse any advertisement that does not serve the College’s educational mission or does not meet the College’s standards. Outside businesses and organizations must obtain written permission to distribute advertising on College premises. Proposals to post links on any College website that connect to businesses and organizations must be approved by the Vice Chancellor or designees. II.L.2. Trademark Management II.L.2.01. Policy The names, logos, trademarks, and other identifying marks of the College and its colleges are protected. Individuals or entities unaffiliated with the College should not use the College’s marks

without express approval from the College’s designated representative. The General Counsel – in consultation with the Chancellor – is delegated the authority to take any reasonable and necessary actions to protect the College’s intellectual property, including trademarks. II.L.2.02. Procedure The Chancellor or designee may adopt procedures to implement this policy.


Request: Consideration and Review of the Lone Star College (the “College”) System Board Policy Manual Section III.C.2. Investment Management (FIRST READING)


That the Board of Trustees consider and review the College’s Board Policy Manual Section III.C.2. Investment Management.

Rationale: The Texas Public Funds Act requires the College’s Board of Trustees review its investment policy and investment strategies not less than annually.


Staff Resources: Mario K. Castillo 832-813-6655Jennifer Mott 832-813-6512

Exhibit "D"

LONE STAR COLLEGE SYSTEM DISTRICT BOARD POLICY MANUAL

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III.C.2. Investment Management

III.C.2.1. Policy The College invests available funds after evaluating the College’s anticipated cash flow requirements and giving due consideration to investment safety and risk. The College’s investment portfolio is prudently designed and managed to obtain reasonable revenue without compromising the College’s cash flow needs, to maintain public trust, and to comply with legal requirements and limitations. This policy applies to all investment assets under the College’s direct control. The College invests with the following objectives in priority order: (1) safety and principal preservation; (2) liquidity; (3) diversification; (4) public trust; and (5) yield. III.C.2.2. Definitions (a) Act means Texas Government Code Chapter 2256, the Public Funds Investment Act. (b) Board means the Board of Trustees with ultimate legal authority to govern the College. (c) Hedging Transactions means contracts and related security, credit, and insurance

agreements designed to protect the College from economic loss due to price fluctuation of a commodity or related investment by entering into an offsetting position or using a financial agreement or producer price agreement in a correlated security, index, or other commodity.

(d) Investment Officers means the College’s Chief Financial Officer and other employees as designated in writing by the College’s Chief Financial Officer, including an employee temporarily holding one of those positions in an acting or interim role.

(e) Repurchase Agreement means a simultaneous agreement to buy, hold for a specified time, and sell back at a future date certain authorized investments for a market value not less than the principal amount of funds disbursed.

(f) SEC means the United States Securities and Exchange Commission. III.C.2.3. Purpose and Strategy The Act requires the College to adopt a written investment policy regarding investment of its funds and funds under its control, including a separate written investment strategy for each of the funds or group of funds under its control. At least annually, the Board reviews this investment policy and investment strategies and adopts a written instrument stating that this review has taken place and listing any changes to the investment policy or strategies. This investment policy addresses the methods and practices the College uses to ensure prudent fund management.


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The College’s overall investment strategy is to properly safeguard College financial assets, provide sufficient liquidity and diversification, and produce a reasonable rate of return while enabling the College to react to changes in economic and market conditions. All investments this policy authorizes are suitable. The longer an investment’s maturity, the greater its price volatility. Therefore, the College primarily invests in short- and intermediate-term investments to limit risk caused by interest rate changes. The College attempts to match its investments with its anticipated cash flow requirements. Cash flow requirements generally divide the portfolio into four major parts: liquidity needs, short-term needs, intermediate-term needs, and longer term, core investment. The College does not purchase investments maturing more than three years from the purchase date. The College’s investment portfolio is designed to obtain a reasonable return throughout budgetary and economic cycles commensurate with investment risk constraints and cash flow needs. “Weighted Average Yield to Maturity” is used to calculate the portfolio’s rate of return. The College commingles its operating, reserve, trust, and agency funds into one investment portfolio for investment efficiency, accurate distribution of earnings, and maximum investment opportunity. Nevertheless, the College recognizes each fund’s unique characteristics and needs and manages its portfolio accordingly. The maximum dollar weighted average maturity of the entire commingled portfolio reflecting cash flow needs will be no greater than one year, and the corresponding benchmark for the commingled portfolio will be the comparable one-year U.S. Treasury security. Capital projects are managed separately in accordance with their anticipated expenditure schedules and bond document requirements. III.C.2.4. College Fund Investment Strategies (a) General Fund includes all College operating funds including, but not limited to, the

general fund, payroll fund, technology fund, student activity fee fund, repair and replacement fund, and the auxiliary fund. This fund’s primary investment objectives are (1) to preserve and safeguard principal; and (2) to match anticipated cash flows with adequate investment liquidity. These objectives are accomplished by purchasing high credit quality, short- to intermediate-term investments matching cash flow requirements. Funds not needed for short-term cash flow requirements are invested in diversified instruments with diversified maturities readily marketable in the secondary market or, if certificates of deposit, redeemable with or without penalty. Yield may be enhanced by using maturity extensions available within the confines of accurate cash flow projections and market cycle timing. This fund’s maximum weighted average maturity is one year, and the maximum stated maturity for any one investment is three years.


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(b) Restricted Fund includes local, state, and federal grant funds and funds from other sources restricted for instructional use. This fund’s primary investment objectives are (1) to preserve and safeguard principal; (2) to maintain liquidity sufficient to meet anticipated cash flow requirements; and (3) to optimize yield. These objectives are accomplished by purchasing high credit quality, short-term investments, diversified by instrument and maturity, and matching the investments’ maturity with anticipated liabilities. Funds not needed for short-term cash flow requirements are invested in diversified instruments with diversified maturities readily marketable in the secondary market or, if certificates of deposit, redeemable with or without penalty. A ladder of short-term investments with sufficient liquidity from cash equivalent investments may be used to maintain a maximum weighted average maturity of one year, and the maximum stated maturity for any one investment is two years or less.

(c) Capital Projects Fund. The Capital Projects Fund’s primary investment objectives are to

(1) preserve and safeguard principal; (2) match cash flows from maturities and earnings of diversified investments to anticipated needs; and (3) obtain a reasonable market yield. Considering appropriate risk constraints, investment choices attempt to attain a return equal to or above the arbitrage yield to avoid negative arbitrage. These objectives are accomplished by purchasing high credit quality, short- and intermediate-term investments with maturities closely matching projected cash flow schedules. Funds not needed for short-term cash flow requirements are invested in diversified instruments with diversified maturities readily marketable in the secondary market or, if certificates of deposit, redeemable with or without penalty. An individual security’s maximum maturity will not exceed the shorter of the funds’ planned expenditure span or the maximum length—currently three years—allowed under this policy.

(d) Debt Service Fund. The Debt Service Fund’s primary investment objectives are to

(1) preserve and safeguard capital; and (2) optimize yield to fund debt service payments in accordance with bond documents. Funds not required for immediate liquidity are invested in diversified instruments. Each successive debt service payment is fully funded before extensions are made. This fund’s maximum weighted average maturity is one year.

(e) Trust and Agency Fund includes local scholarship funds, club funds, and other funds for

which the College acts as fiduciary and which have short average lives and high liquidity needs. This fund’s primary investment objectives are to ensure safety, liquidity, diversification, and yield. These objectives are accomplished by purchasing high credit quality, short-term investments and cash equivalents for liquidity. This fund’s maximum weighted maturity is six months, and the maximum stated maturity for any one investment is one year.

III.C.2.5. Prudent Person Rule When investing for the College, investment officers consider prevailing internal and market circumstances which persons of prudence, discretion, and intelligence would exercise when


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managing their own affairs—not for speculation, but for investment. Investment officers consider the probable safety of capital as well as probable income from an investment decision. When determining if an investment officer exercised prudence in an investment decision, reviewers consider the investment of all funds rather than a single investment and whether the investment decision was consistent with this investment policy. III.C.2.6. Credit Rating Downgrades At least quarterly, investment officers obtain from a reliable source the current credit rating for each College investment for which the Act requires a minimum rating. Investment officers meet to discuss any investment which has been downgraded or placed on credit-watch to evaluate and take any necessary and prudent measures to assure the safety of College funds. As quickly as prudently possible, the College liquidates any investment that becomes unauthorized or loses its required credit rating. III.C.2.7. Authority and Delegation The Act authorizes the College to manage College investments and to delegate such management. III.C.2.8. Investment Officers The Board designates the College’s investment officers and delegates to them responsibility to manage the College’s investment program under the Chancellor’s supervision. The Board retains ultimate fiduciary responsibility for College investments. Investment officers are responsible for all investment transactions, and they establish and maintain controls to regulate subordinates’ activities. No person may engage in an investment transaction for the College except as set forth in this policy and relevant Chancellor’s procedures. Investment officers acting in good faith under relevant policies and procedures are not personally liable for investment results. Investment officers report to the Board quarterly on investment results and annually on counterparties. No later than the 180th day after the 1st day of each regular session of the Texas Legislature, investment officers prepare and deliver a report to the Board on the Act. III.C.2.9. Investment Training The College provides access to periodic investment training for trustees, investment officers, and other investment personnel through courses and seminars offered by professional organizations, associations, and other independent sources in compliance with the Act. Within six months after taking office or assuming duties, trustees and investment officers must acquire at least the minimum investment training required by the Texas Higher Education Coordinating Board. Training must include education in investment controls, security risks,


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strategy risks, market risks, diversification of investment portfolio, and compliance with the Act. In addition, the College’s Chief Financial Officer’s staff directly involved with day-to-day investment operations will attend training about the Act not less than once each state fiscal biennium. Investment officers also complete at least the minimum required hours of training not less than once each state fiscal biennium. An independent source approved by the Board provides all such training. The following are Board-approved training providers: 1. American Institute of Certified Public Accountants 2. Arbitrage Compliance Group 3. Association of Governmental Accountants 4. City Managers’ Association 5. Council of Governments 6. Government Finance Officers’ Association 7. Government Finance Officers’ Association of Texas 8. Government Treasurers’ Organization of Texas 9. Texas Association of Community College Business Officers 10. Texas Higher Education Coordinating Board 11. Texas Municipal League 12. Texas Society of Certified Public Accountants 13. Texas State Board of Public Accountancy 14. The PFM Group 15. University of North Texas Center for Public Management III.C.2.10. Ethics and Disclosure of Conflicts of Interest Investment officers and other College employees involved in the investment process refrain from personal business activity that could (1) conflict with properly executing the investment program or (2) impair their ability to make impartial investment decisions. Investment officers disclose potential conflicts of interest annually and as conditions change. Investment officers file a disclosure statement with the Texas Ethics Commission and the Board if: (a) The investment officer has a personal business relationship with a business organization

offering to engage in an investment transaction with the College; or (b) The investment officer is related within the second degree by affinity or consanguinity, as

determined under Texas Government Code Chapter 573, to an individual seeking to transact investment business with the College.

III.C.2.11. Investment Providers Investment officers obtain and maintain information on all financial institutions and brokers/dealers authorized to engage in investment transactions with the College, including the following information, as applicable:


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(a) Audited annual financial statements; (b) Proof of Financial Industry Regulatory Authority membership and CRD number; (c) Proof of registration with the Texas State Securities Board; and (d) Completed College questionnaire. All investment providers (including but not limited to financial institutions, broker/dealers, investment pools, mutual funds, and investment advisors) must certify in writing that the entity’s authorized representative has received and thoroughly reviewed the College’s current investment policy and that the entity has reasonable procedures and controls to preclude transactions conducted with the College not authorized by its investment policy except to the extent that authorization depends on analyzing the College’s entire portfolio or requires interpretation of subjective investment standards. Whenever the Board adopts material changes to the College’s investment policy, investment providers must re-certify their adherence to this policy. III.C.2.12. Annual Board Review of Brokers/Dealers The Board annually adopts a list of qualified brokers/dealers authorized to engage in investment transactions with the College. The Board considers service, market involvement, and creditworthiness when selecting brokers/dealers to provide brokerage services. Selected firms may include primary dealers and regional dealers qualifying under the SEC’s uniform net capital rule. Each year, investment officers review and evaluate firms authorized to enter into investment transactions with the College. Their review and evaluation may include the following criteria: (a) Number of transactions competitively won/attempted;

(b) Prompt and accurate confirmation of transactions;

(c) Efficiency of transaction settlement;

(d) Accuracy of market information; and

(e) Account servicing. After their review and evaluation, investment officers recommend to the Board a list of firms to authorize to enter into investment transactions with the College for the following year. III.C.2.13. Authorized and Unauthorized Investments


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The College may invest in any investment authorized by Texas Government Code Chapter 2256 or its successor statute. The College may not invest in the following: (a) Obligations whose payment represents the coupon payments on the outstanding principal

balance of the underlying mortgage-backed security collateral and pays no interest. (b) Obligations whose payment represents the principal stream of cash flow from the

underlying mortgage-backed security collateral and pays no interest. (c) Collateralized mortgage obligations with a stated final maturity greater than 10 years. (d) Collateralized mortgage obligations with an interest rate determined by an index that

adjusts opposite to the changes in a market index. III.C.2.14. Securities Held by Custodians All securities owned by the College are held by independent third party custodians approved by the College. The delivery shall be made under normal and recognized practices in the securities and banking industries, including the book entry procedure of the Federal Reserve Bank. III.C.2.15. Delivery versus Payment Except for investment pool funds and mutual funds, the College settles all security transactions on a delivery versus payment basis. III.C.2.16. Competition College investment activities occur in a competitive environment. Competitive elements include, but are not limited to, analyzing strategies, reviewing investment alternatives, monitoring market conditions, requesting solicitations from multiple investment providers, adhering to applicable “bona fide solicitation” rules, and overall performance evaluations. The College may compare and evaluate, but does not require formal bidding, before investing in financial institution deposits, money market mutual funds, or local government investment pools. Bids or offers may be solicited orally, in writing, or electronically for securities and certificates of deposit. The College maintains records of all prices and levels bid, offered, or accepted. III.C.2.17. Diversification The College recognizes investment risks from issuer defaults, market price changes, or complications leading to temporary illiquidity. The College manages market risks by diversifying its portfolio within the following general guidelines:


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(a) Avoid over-concentration in investments from a specific issuer or business sector; (b) Limit investments with higher credit risk (such as commercial paper); (c) Invest in instruments with varying maturities to meet the College’s cash flow projections; (d) Continuously invest part of the portfolio in readily available funds (such as local

government investment pools, financial institution deposits, money market funds, or overnight repurchase agreements) to maintain sufficient liquidity for ongoing obligations.

(e) Adhere to the following maximum limits (at time of purchase) by instrument for the

College’s total portfolio:

1. US Treasury Obligations ................................................................ 90% 2. US Agencies and Instrumentalities ................................................. 90% 3. Certificates of Deposit .................................................................... 90% 4. Repurchase Agreements (excluding bond proceeds) ...................... 50% 5. Flexible Repurchase Agreements (bond proceeds) ...................... 100% 6. Investment Pools ........................................................................... 100% 7. Municipal Securities ....................................................................... 30% 8. Commercial Paper .......................................................................... 25% 9. Commercial Paper by issuer ............................................................. 5% III.C.2.18. Hedging Transactions As permitted by state law, the College may enter into hedging transactions related to commodities the College uses in its general operations or related to certain capital projects or other eligible projects. All hedging transactions must fully comply with all relevant state and federal laws, including Texas Government Code Chapter 2256 or its successor statute, the regulations of the federal Commodity Futures Trading Commission, and SEC regulations. Amounts the College receives under hedging transactions may be credited against expenses associated with a commodity purchase, and amounts the College pays under hedging transactions may be considered a maintenance and operations expense, an acquisition expense, a construction expense, or a project cost. III.C.2.19. Internal Controls Internal controls provide reasonable assurance that College funds are protected from loss, theft, or misuse. The concept of reasonable assurance recognizes that a control’s cost should not significantly exceed the benefits likely to be derived therefrom and that valuing costs and benefits requires estimates and judgments by management. Internal controls for cash management and investment address at least the following points: (a) Complete documentation of all transactions;


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(b) Collusion control; (c) Accounting and recordkeeping separation; (d) Custodial safekeeping; (e) Clear delegation of authority to subordinate staff members; (f) Written confirmation for all transactions; (g) Timely reconciliation of transactions; and (h) Assurance of “delivery versus payment” settlement and competitive bidding. III.C.2.20. Compliance Audit At least once every two years, an external auditor in cooperation with, but independent of, the Chief Financial Officer reviews the College’s investment practices for compliance with College policies and procedures. The Chief Financial Officer coordinates this independent review in cooperation with the College’s Internal Auditor. Not later than January 1 of each even-numbered year, the College reports the most recent audit’s results to the Texas State Auditor’s Office. III.C.2.21. Quarterly Reporting Each quarter, investment officers prepare, sign, and present to the Chancellor and to the Board an investment report for the most recent quarter summarizing investment strategies employed and detailing the portfolio’s investment and earnings. Each quarterly investment report includes a summary statement of investment activity. Quarterly reports allow the reader to ascertain whether investment activities during the reporting period adhered to the College’s investment policy. Each report includes at least the following: (a) A detailed listing of individual investments by maturity date at the reporting period’s end; (b) A portfolio summary by market sectors and maturities; (c) The beginning and ending book and market values of each security and position by asset

type and fund type invested; (d) Unrealized market gains or losses at the reporting period’s end; (e) The account, fund, or pooled group fund for which each individual investment was

acquired;


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(f) The portfolio’s average weighted yield to maturity as compared to its benchmark; (g) Net accrued investment earnings for the reporting period; (h) Diversification by market sectors; and (i) A statement of compliance with the Act and the College’s investment policy and strategy

as approved by the Board. III.C.2.22. Market Values in Quarterly Reports Market values used in quarterly reports are obtained from reputable and independent sources, which may include financial/investment publications and electronic media, investment tracking software, depository banks, commercial or investment banks, financial advisors, and representatives or advisors of investment pools or money market funds. III.C.2.23. Annual Reporting As required by the Texas State Auditor’s Office in accordance with the 82nd Texas Legislature’s General Appropriations Act, Article III, Rider 5–Investment Reports, the College files with the State Auditor, Comptroller of Public Accounts, Legislative Budget Board, and the Governor an annual report of all investment transactions involving endowment funds, short-term and long-term investment funds, and all other securities transactions, in a method prescribed by the State Auditor’s Office. The public may inspect copies of these reports, and the annual investment report is posted on the College’s website by December 31 of each year.

LSCS Policy Manual Section adopted by the Board of Trustees on March 1, 2018


Request: Consideration and Review of the Recommended Revision of the Lone Star College (the “College”) Board Policy Manual Section VI.A. Admissions Policy to include subsection VI.A.2.1. Health Occupation Programs Admission Policy (FIRST READING)


That the Board of Trustees consider and review revisions to the College’s Board Policy Manual Section VI.A. Admissions Policy to include subsection VI.A.2.1. Health Occupation Programs Admission Policy.

Rationale: This revision would include a subsection specifically addressing admissions to the College’s Health Occupation Programs. The Health Occupations faculty and administration recommend setting the minimum applicant age to 18 years old. Their recommendation is based on the program’s criteria, including participation in clinical rotations in local hospitals and clinics. This revision gives notice to students of this requirement and provides for a grievance mechanism.


Staff Resource: Mario K. Castillo 832-813-6655Dwight Smith 832-813-6603

Exhibit "E"


Fifth Edition SECTION VI – STUDENTS

VI.A. ADMISSIONS

****

VI.A.2.1. Health Occupation Programs Admissions Policy Health Occupation programs do not consider applications from Prospective Students not at least 18 years old at the time of the program application’s deadline—except that specified Independent School Districts have special student admission criteria for students evidenced by an executed agreement between the College and the specified ISD. Any applicant that willfully misrepresents Material Information on the application will not be accepted or conditionally remain in a Health Occupation Program.

VI.A.2.2. Definitions

(a) Health Occupation Programs means programs identified by the College that prepare students to enter the healthcare industry. These programs include credit and non-credit programs.

(b) Prospective Students means a student who is seeking to submit an application and who is not officially accepted into the health occupation programs.

(c) Application Deadlines means the identified date provided and published by the health occupation program. Health Occupation Programs only consider applications fully completed by the Program’s application deadline.

(d) Material information means any information that the College reports to a third party on behalf of the student—including but not limited to: hospitals, accrediting, or state agencies.

VI.A.2.3. Admission Grievance Policy The Health Occupation Programs have competitive admission processes even though the College admits students through open enrollment. Admission denials include, but are not limited to: incomplete applications, misleading information, not meeting admission criteria, or lower admission scores that other cohort members. Students may appeal admission denials to the Program Director and then to the appropriate Dean. The Dean’s admission decision is final.


Request: Consideration and Review of the Recommended Revision of the Lone Star College (the “College”) System Board Policy Manual Section VI.B.2.01. Installment Payment Plans (FIRST READING)


That the Board of Trustees consider and review the revision of the College’s Board Policy Manual Section VI.B.2.01. Installment Payment Plans.

Rationale: Section 54.007 of the Texas Education Code allows the College to offer students the option to pay tuition and mandatory fees through an installment payment plan. The College must establish a deadline for the first installment plan payment that is no later than the Census Date, or Official Day of Record, for the term. The current version of Section VI.B.2.01. lists the first day of class as the deadline for the first installment plan payment. The revised version of Section VI.B.2.01. extends the deadline to the Official Day of Record to allow students additional time to enroll in a payment plan and make their first payment, potentially increase enrollment, and reduce requests for variances from Board Policy for students who encounter unforeseen issues affecting their ability to pay prior to the day classes begin. Additionally, the proposed revision streamlines and condenses the section for readability.


Staff Resource: Mario K. Castillo 832-813-6655Jennifer Mott 832-813-6512

Exhibit "F"


Fifth Edition VI.B.2. Installment Payment Plans

VI.B.2.01 Policy The College may offer installment payment plans, as specified in the Tuition and Fees Procedures. Payment plans require a student’s first payment prior to the Official Day of Record for each session in a term and final payment by the last week of class. A student who uses a payment plan will pay an extra enrollment fee at enrollment for each semester the student has a payment plan. The College will inform a student about any overdue tuition or fees. Not paying tuition and fees may impact enrollment status.

Curriculum Report and Consideration No. 1 (ACTION ITEM 1) Board Meeting 2-7-19

Request: Consideration of Approval of the Lone Star College (the “College”) Core Curriculum for the 2019-2021 Academic Years


That the Board of Trustees approve the revised core curriculum for the 2019-2021 academic years.

Rationale: "Core curriculum" is defined by Texas law as the curriculum in liberal arts, humanities, and sciences and political, social, and cultural history that all undergraduate students of an institution of higher education are required to complete before receiving an academic undergraduate degree. Each institution has some flexibility in determining which specific courses meet Texas Higher Education Coordinating Board (“THECB”) core curriculum requirements within the identified curriculum areas.

The College’s core curriculum committee reviewed several proposals submitted by curriculum teams to include additional courses within the approved curriculum. In addition, the THECB updated the Academic Course Guide Manual (“ACGM”) with courses marked for deletion.

Recommended changes to the 2019-2021 Core include the following: Creative Arts: Remove ENGL 2342 and ENGL 2343 Life & Physical Science: Add GEOL 1401

The College’s core curriculum is reviewed biannually to ensure compliance with requirements and conformity with student needs. Changes are suggested by faculty curriculum teams, recommended by the faculty academic core committee, reviewed by the Vice Presidents’ Council, Presidents’ Council and the Chancellor’s Cabinet.

The revised core curriculum must be submitted to THECB for final approval.

The revised core curriculum is attached.


Staff Resource: Dwight Smith 832-813-6603

Exhibit "G"

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2019-2021 Core Curriculum Updates for this biennium:

• Course Added (Per decision of Faculty- led Core Curriculum Committee) o GEOL 1401 - Earth Sciences for Non-Science Majors I

• Courses Removed (Due to changes in ACGM by THECB) o ENGL 2342 - Forms of Literature I o ENGL 2343 - Forms of Literature II

Total Core Curriculum Credit Hours Required: 42

A course cannot satisfy more than one requirement of the degree.

Communication [10]

Category Credit Hours Required: 6

Students must complete ENGL 1301 and one Speech course from this list.

• ENGL 1301 - Composition and Rhetoric I 3 Credits

• SPCH 1311 - Introduction to Communication 3 Credits • SPCH 1315 - Public Speaking 3 Credits • SPCH 1318 - Interpersonal Communication 3 Credits • SPCH 1321 - Business and Professional Communication 3 Credits

Mathematics [20]


• MATH 1314 - College Algebra 3 Credits • MATH 1316 - Trigonometry 3 Credits • MATH 1324 - Mathematics for Business & Social Science 3 Credits • MATH 1325 - Calculus for Business & Social Sciences 3 Credits • MATH 1332 - Mathematics for Liberal Arts 3 Credits • MATH 1342 - Statistics 3 Credits • MATH 1350 - Mathematics for Teachers I 3 Credits * • MATH 1351 - Mathematics for Teachers II 3 Credits * • MATH 2318 - Linear Algebra 3 Credits • MATH 2412 - Precalculus 4 Credits † • MATH 2413 - Calculus I 4 Credits † • MATH 2414 - Calculus II 4 Credits †

• PHIL 2303 - Introduction to Formal Logic 3 Credits

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Notes

* Specifically designed for elementary and middle school teachers.

† This courses satisfies the mathematics core requirement of three semester hours; however, the fourth hour is not a part of the transfer core curriculum and may be transferred as an elective hour.

Life & Physical Sciences [30]


• BIOL 1406 - Biology I for Science Majors 4 Credits • BIOL 1407 - Biology II for Science Majors 4 Credits • BIOL 1408 - Biology I for Non-Science Majors 4 Credits • BIOL 1409 - Biology II for Non-Science Majors 4 Credits • BIOL 1414 - Introduction to Biotechnology 4 Credits • BIOL 2401 - Human Anatomy & Physiology I 4 Credits • BIOL 2402 - Human Anatomy & Physiology II 4 Credits • BIOL 2404 - Introduction to Anatomy and Physiology 4 Credits • BIOL 2406 - Environmental Biology 4 Credits • BIOL 2420 - Medical Microbiology 4 Credits • BIOL 2421 - General Microbiology 4 Credits

• CHEM 1405 - Introductory Chemistry 4 Credits • CHEM 1407 - Introductory Chemistry II 4 Credits • CHEM 1411 - General Chemistry I 4 Credits • CHEM 1412 - General Chemistry II 4 Credits • CHEM 2423 - Organic Chemistry I 4 Credits • CHEM 2425 - Organic Chemistry II 4 Credits

• ENVR 1401 - Environmental Science I 4 Credits • ENVR 1402 - Environmental Science II 4 Credits

• GEOL 1401 - Earth Sciences for Non-Science Majors I 4Credits • GEOL 1403 - Physical Geology 4 Credits • GEOL 1404 - Historical Geology 4 Credits • GEOL 1445 - Oceanography 4 Credits

• PHYS 1401 - College Physics I 4 Credits • PHYS 1402 - College Physics II 4 Credits • PHYS 1403 - Stars and Galaxies 4 Credits • PHYS 1404 - Solar System 4 Credits • PHYS 1410 - Elementary Physics 4 Credits • PHYS 2425 - University Physics I 4 Credits • PHYS 2426 - University Physics II 4 Credits

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Language, Philosophy, & Culture [40]


• ENGL 2322 - Survey of British Literature - Anglo-Saxon through the 18th Century 3 Credits

• ENGL 2323 - Survey of British Literature - Romantic through the Present 3 Credits • ENGL 2327 - Survey of American Literature - Exploration through the Civil War 3 Credits • ENGL 2328 - Survey of American Literature - Civil War through the Present 3 Credits • ENGL 2332 - Survey of World Literature - Ancient World through the 16th Century 3

Credits • ENGL 2333 - Survey of World Literature- 17th Century through the Present 3 Credits • ENGL 2341 - Forms of Literature 3 Credits • ENGL 2351 - Mexican-American Literature 3 Credits

• HUMA 1301 - Introduction to the Humanities I: Prehistory to Gothic 3 Credits • HUMA 1302 - Introduction to the Humanities II: Renaissance to the Present 3 Credits • HUMA 1305 - Introduction to Mexican-American Studies 3 Credits • HUMA 1311 - Mexican-American Fine Arts Appreciation 3 Credits • HUMA 2319 - Minority Cultures in the United States 3 Credits

• PHIL 1301 - Introduction to Philosophy 3 Credits • PHIL 1304 - Introduction to World Religions 3 Credits • PHIL 2306 - Introduction to Ethics 3 Credits • PHIL 2307 - Introduction to Social and Political Philosophy 3 Credits • PHIL 2316 - Classical Philosophy 3 Credits • PHIL 2321 - Philosophy of Religion 3 Credits

• ARAB 2311 - Intermediate Arabic I 3 Credits • ARAB 2312 - Intermediate Arabic II 3 Credits

• CHIN 2311 - Intermediate Chinese I 3 Credits • CHIN 2312 - Intermediate Chinese II 3 Credits

• FREN 2311 - Intermediate French I 3 Credits • FREN 2312 - Intermediate French II 3 Credits

• GERM 2311 - Intermediate German I 3 Credits • GERM 2312 - Intermediate German II 3 Credits

• ITAL 2311 - Intermediate Italian I 3 Credits • ITAL 2312 - Intermediate Italian II 3 Credits

• JAPN 2311 - Intermediate Japanese I 3 Credits • JAPN 2312 - Intermediate Japanese II 3 Credits

• PORT 2311 - Intermediate Portuguese I 3 Credits

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• PORT 2312 - Intermediate Portuguese II 3 Credits

• SGNL 2301 - Intermediate American Sign Language I 3 Credits • SGNL 2302 - Intermediate American Sign Language II 3 Credits

• SPAN 2311 - Intermediate Spanish I 3 Credits • SPAN 2312 - Intermediate Spanish II 3 Credits • SPAN 2313 - Spanish for Native Speakers I 3 Credits • SPAN 2315 - Spanish for Native Speakers II 3 Credits

Creative Arts [50]


• ARTS 1301 - Art Appreciation 3 Credits • ARTS 1303 - Art History: Prehistory to Gothic 3 Credits • ARTS 1304 - Art History: Renaissance to Modern 3 Credits

• DANC 2303 - Dance Appreciation 3 Credits

• DRAM 1310 - Theatre Appreciation 3 Credits • DRAM 2366 - Film Appreciation 3 Credits

• MUSI 1306 - Appreciating Music 3 Credits • MUSI 1307 - Music Literature 3 Credits • MUSI 1310 - American Music 3 Credits

History [60]


• HIST 1301 - United States History to 1877 3 Credits • HIST 1302 - United States History Since 1877 3 Credits • HIST 2301 - Texas History 3 Credits

Government [70]


• GOVT 2305 - Federal Government 3 Credits • GOVT 2306 - Texas Government 3 Credits

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Social/Behavioral Sciences [80]


• ANTH 2301 - Physical Anthropology 3 Credits • ANTH 2351 - Cultural Anthropology 3 Credits

• CRIJ 1301 - Introduction to Criminal Justice 3 Credits • CRIJ 1307 - Crime in America 3 Credits

• ECON 2301 - Macroeconomics 3 Credits • ECON 2302 - Microeconomics 3 Credits

• GEOG 1301 - Physical Geography 3 Credits • GEOG 1303 - World Regional Geography 3 Credits

• GOVT 2304 - Introduction to Political Science 3 Credits • GOVT 2311 - Mexican-American Politics 3 Credits

• HIST 2311 - Western Civilization to 1648 3 Credits • HIST 2312 - Western Civilization from 1648 3 Credits • HIST 2321 - World History to 1492 3 Credits • HIST 2322 - World History from 1492 3 Credits

• PSYC 2301 - General Psychology 3 Credits

• SOCI 1301 - Principles of Sociology 3 Credits • SOCI 1306 - Social Problems 3 Credits

Component Area Option [90]


Students must complete PHED 1164 and either ENGL 1302 or ENGL 2311.

• ENGL 1302 - Composition and Rhetoric II 3 Credits • ENGL 2311 - Technical Communications 3 Credits

• PHED 1164 - Introduction to Physical Fitness & Wellness 1 Credits


Request: Consideration of Approval to Expand the Lone Star College (the “College”) Mechatronics Technician Associate of Applied Science (“AAS”) Degree and Level 2 Certificate to Lone Star College-North Harris (“LSC-North Harris”)


That the Board of Trustees approve expanding the Mechatronics Technician AAS Degree and Level 2 Certificate to LSC-North Harris beginning in Fall 2019.

Rationale: LSC-North Harris requests approval to offer the Mechatronics Technician AAS Degree and Level 2 Certificate.

This program will prepare students for entry-level jobs in industrial engineering technology and manufacturing technology.

Demand in the Houston-The Woodlands-Sugarland Metropolitan Statistical Area (“MSA”) shows steady growth for related occupations. Additionally, labor market data from the Texas Workforce Commission and Burning Glass Technologies shows strong wages and job demand over the past year for this occupational field.

Mechatronics Technician Occupation: Industrial Engineering Technician TWC Forecasted Total Annual Average Job Openings in the Gulf Coast (2016-2026) 76

TWC Gulf Coast Median Wage (2017) $33.31 Burning Glass Job Postings (Job Postings Nov. 01, 2017 - Oct. 31, 2018, Houston-The Woodlands-Sugarland Metropolitan Statistical Area)

1,277

Sources: Texas Workforce Commission, Burning Glass Technologies

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

Fiscal Impact: Estimated start-up expenses in a sum not exceeding $1,919,855 will be included in the proposed LSC-North Harris FY 2020 operating budget ($158,355), bond funds ($1,760,000), and Workforce Council Program Development funds ($1,500). No additional funding is required for start-up costs. Funds for subsequent years will be included in future proposed budgets.

Staff Resource: Gerald Napoles 281-618-5444Mario K. Castillo 832-813-6606

Exhibit "H"


Request: Consideration of Approval to Expand the Lone Star College (the “College”) Mechanical Design Technology Associate of Applied Science (“AAS”) Degree and Computer Aided Design Operator/Drafting Level 1 Certificate to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New Branch Campus


That the Board of Trustees approve expanding the Mechanical Design Technology AAS Degree and Computer Aided Design Operator/Drafting Level 1 Certificate to LSC-Houston North.

Rationale: LSC-Houston North requests approval to offer the Mechanical Design Technology AAS Degree and Computer Aided Design Operator/Drafting Level 1 Certificate.

This program will prepare students for entry-level jobs in mechanical engineering technology and drafting.


Mechanical Design Technology Occupation: Mechanical Engineering Technologists and Engineering Technicians TWC Forecasted Total Annual Average Job Openings in the Gulf Coast (2016-2026) 242

TWC Gulf Coast Median Wage (2017) $28.71/hour Burning Glass Job Postings (Job Postings Dec. 01, 2017 - Nov. 30, 2018, Houston-The Woodlands-Sugarland Metropolitan Statistical Area)

1,556



Fiscal Impact: Estimated start-up expenses in a sum not exceeding $247,269 will be included in the proposed LSC-Houston North FY 2020 operating budget. No additional funding is required for start-up costs. Funds for subsequent years will be included in future proposed budgets.

Exhibit "I"

Staff Resource: Quentin Wright 832-813-6688 Mario K. Castillo 832-813-6606


Request: Consideration of Approval to Expand the Lone Star College (the “College”) Logistics Management Associate of Applied Science (“AAS”) Degree and First Line Logistics Leader Level 1 Certificate to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New Branch Campus


That the Board of Trustees approve expanding the College’s Logistics Management AAS Degree and First Line Logistics Leader Level 1 Certificate to LSC-Houston North beginning in Fall 2019.

Rationale: LSC-Houston North requests approval to offer the Logistics Management AAS Degree and First Line Logistics Leader Level 1 Certificate.

This program will prepare students for entry-level jobs in logistics, materials, and supply chain management.


Logistics Management Occupation: Transportation, Storage, and Distribution Managers TWC Forecasted Total Annual Average Job Openings in the Gulf Coast (2016-2026) 256


1,155




Staff Resource: Quentin Wright 832-813-6688Mario K. Castillo 832-813-6606

Exhibit "J"


Request: Consideration of Approval to Expand the Lone Star College (the “College”) Mobile/Web Application Development Associate of Applied Science (“AAS”) Degree to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New Branch Campus


That the Board of Trustees approve expanding Mobile/Web Application Development AAS Degree to LSC-Houston North beginning in Fall 2019.

Rationale: LSC-Houston North requests approval to offer Mobile/Web Application Development AAS Degree.

This program will prepare students for entry-level jobs in software and application development.


Mobile/Web Application Development Occupation: Software Developer TWC Forecasted Total Annual Average Job Openings in the Gulf Coast (2016-2026) 1,294


12,951



Fiscal Impact: Estimated start-up expenses in a sum not exceeding $281,200 will be included in the proposed LSC-Houston North FY 2020 operating budget. No additional funding is required for start-up costs.

Staff Resource: Quentin Wright 832-813-6688Mario K. Castillo 832-813-6606

Exhibit "K"


Request: Consideration of Approval to Expand the Lone Star College (the “College”’) Heating, Ventilation, Air Conditioning and Refrigeration (“HVAC) Associate of Applied Science (“AAS”) Degree, HVAC Occupational Entry Certificate, HVAC Commercial Servicing Level 1 Certificate, and HVAC Residential Servicing Level 1 Certificate to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New Branch Campus


That the Board of Trustees approve expanding the College’s HVAC AAS Degree, HVAC Occupational Entry Certificate, HVAC Commercial Servicing Level 1 Certificate, and HVAC Residential Servicing Level 1 Certificate to LSC-Houston North beginning in Fall 2019.

Rationale: LSC-Houston North requests approval to offer the HVAC AAS Degree, HVAC Occupational Entry Certificate, HVAC Commercial Servicing Level 1 Certificate, and HVAC Residential Servicing Level 1 Certificate.

This program will prepare students for entry-level jobs in heating, air conditioning, ventilation, and refrigeration maintenance technology.


Heating, Ventilation, Air Conditioning and Refrigeration (HVAC) Occupation: HVAC Technician TWC Forecasted Total Annual Average Job Openings in the Gulf Coast (2016-2026) 803


1,261



Exhibit "L"

Fiscal Impact: Estimated start-up expenses in a sum not exceeding $1,611,289 will be included in the proposed LSC-Houston North FY 2020 operating budget. No additional funding is required for start-up costs. Funds for subsequent years will be included in future proposed budgets.



Request: Consideration of Approval Expanding the New Lone Star College (the “College”) Welding Associate of Applied Science (“AAS”) Degree, Gas Metal Arc Welding Level 1 Certificate, Gas Tungsten Arc Welding Level 1 Certificate, Pipe Welding Level 1 Certificate, and Shielded Metal Arc Welding Level 1 Certificate to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New Branch Campus


That the Board of Trustees approve expanding the Welding Associate of AAS Degree, Gas Metal Arc Welding Level 1 Certificate, Gas Tungsten Arc Welding Level 1 Certificate, Pipe Welding Level 1 Certificate, and Shielded Metal Arc Welding Level 1 Certificate to LSC-Houston North beginning in Fall 2019

Rationale: LSC-Houston North requests approval to offer the Welding AAS Degree, Gas Metal Arc Welding Level 1 Certificate, Gas Tungsten Arc Welding Level 1 Certificate, Pipe Welding Level 1 Certificate, and Shielded Metal Arc Welding Level 1 Certificate.

This program will prepare students for entry-level jobs in welding technology.


Welding Technology Occupation: Welder TWC Forecasted Total Annual Average Job Openings in the Gulf Coast (2016-2026) 2,530


1,162



Exhibit "M"


Request: Consideration of Approval to Expand the Lone Star College (the “College”) Human Services Substance Abuse Counseling Associate of Applied Science (“AAS”) Degree and Basic Chemical Dependency Counselor Level 1 Certificate to Lone Star College-Houston North (“LSC-Houston North”) Pending SACSCOC Approval of the New Branch Campus


That the Board of Trustees approve expanding the College’s Human Services Substance Abuse Counseling AAS Degree and Basic Chemical Dependency Counselor Level 1 Certificate to LSC-Houston North beginning Fall 2019.

Rationale: LSC-Houston North requests approval to offer the Human Services Substance Abuse Counseling AAS Degree and Basic Chemical Dependency Counselor Level 1 Certificate.

This program will prepare students for entry-level jobs in substance abuse and addiction counseling.


Human Services Occupation: Substance Abuse and Behavioral Disorder Counselors TWC Forecasted Total Annual Average Job Openings in the Gulf Coast (2016-2026) 451

TWC Gulf Coast Median Wage (2017) $21.78/hour Burning Glass Job Postings (Job Postings Dec. 01, 2017 - Nov. 30, 2018, Houston-The Woodlands-Sugarland Metropolitan Statistical Area)

90




Exhibit "N"

Financial Report and Consideration No. 1 (ACTION ITEM 9) Board Meeting 2-7-19

Request: Consideration of Approval of a Resolution to Authorize the Imposition of an Additional Penalty of 20% of the Delinquent Tax, Penalty, and Interest Owed to Lone Star College System (the “College”) on Real Property and Tangible Personal Property in Harris, Montgomery, and San Jacinto Counties


That the Board of Trustees approve the resolution to authorize the imposition of an additional penalty of 20% of the delinquent tax, penalty, and interest owed to the College on real property and tangible personal property in Harris, Montgomery, and San Jacinto counties for a consecutive five-year period beginning in Tax Year 2018.

Rationale: On October 4, 2018, the Board authorized the negotiatiation of a contract for delinquent tax collection with the law firm Linebarger, Goggan, Blair and Sampson to collect delinquent taxes in accordance with §6.30 of the Texas Property Tax Code. The contract with Linebarger, Goggan, Blair and Sampson was executed on December 10, 2018 and became effective on January 1, 2019, and calls for a collection fee of 20% of the amount collected for delinquent taxes to be paid to the law firm. The contract is effective for three consecutive years after the effective date and may be extended for up to two one-year renewal terms.

Texas Property Tax Code §§ 33.07, 33.08, and 33.11 allow a taxing authority to authorize the addition of a collection penalty in an amount that does not exceed the amount of the compensation specified in the contract with the law firm in order to defray the collection cost for delinquent property taxes.

The County Tax Assessor-Collectors require a copy of a taxing unit’s resolution and or ordinance regarding additional collection costs for delinquent tax collections.

Fiscal Impact: The collected penalty will offset the College’s legal fees in collecting the delinquent tax sums.

Staff Resource: Jennifer Mott 832-813-6512

Exhibit "O"

RESOLUTION AUTHORIZING AN ADDITIONAL PENALTY OF 20% OF THE DELINQUENT TAX, PENALTY, AND INTEREST OWED TO LONE STAR COLLEGE SYSTEM (THE “COLLEGE”) ON REAL PROPERTY AND TANGIBLE PERSONAL PROPERTY IN HARRIS, MONTGOMERY, AND SAN JACINTO COUNTIES FOR THE 2018 TAX YEAR, AND FOR FIVE CONSECUTIVE SUCCEEDING TAX YEARS THEREAFTER, TO DEFRAY THE COSTS OF COLLECTING DELINQUENT PROPERTY TAXES

WHEREAS, Texas Tax Code §6.30, as amended, authorizes a taxing unit to contract with any competent attorney to enforce the collection of delinquent taxes and may compensate the attorney up to 20% of the delinquent tax, penalty, and interest collected by the attorney;

WHEREAS, Texas Tax Code §33.07, §33.08, and §33.11, as amended, authorize

the College’s Board of Trustees to impose an additional penalty to defray the costs of collecting delinquent taxes due to the College, not to exceed the compensation specified in the contract with an attorney pursuant to Texas Tax Code § 6.30, as amended;

WHEREAS, the College has contracted with Linebarger, Goggan, Blair &

Sampson, LLP (“Linebarger”) for a fee of 20% of all delinquent taxes, penalty, and interest collected to collect the College’s delinquent taxes;

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE LONE STAR COLLEGE SYSTEM THAT:

Section 1. The facts recited above are true and correct. Section 2. For tax year 2018 or any subsequent tax year, taxes imposed on tangible

personal property which become delinquent on or after February 1 and remain delinquent for 60 days incur an additional penalty equal to the compensation specified in the contract with Linebarger to be paid in connection with the collection of the delinquent taxes – i.e., 20% of delinquent taxes, penalty, and interest. The College imposes this penalty under Texas Tax Code § 33.11 to defray collection costs.

Section 3. For tax year 2018 or any subsequent tax year, taxes on property other than tangible personal property which become delinquent on or after February 1 but not later than May 1 and remain delinquent on July 1 incur an additional penalty equal to the compensation specified in the contract with Linebarger to be paid in connection with the collection of the delinquent taxes – i.e., 20% of delinquent taxes, penalty, and interest. The College imposes this penalty under Texas Tax Code § 33.07 to defray collection costs.

Section 4. For tax year 2018 or any subsequent tax year, taxes which become

delinquent on or after June 1 of the year in which they become delinquent under Sections 26.07(f), 26.15(e), 31.03, 31.031, 31.032, or 31.04 incur an additional penalty equal to the compensation specified in the contract with Linebarger to be paid in connection with the collection of the delinquent taxes – i.e., 20% of delinquent taxes, penalty, and interest. The College imposes this penalty under Texas Tax Code § 33.08 to defray collection costs.


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Easements and Agreements on Behalf of Lone Star College (the “College”) Related to 0.8549 Acres of College Property Located on the South Side of West Road, West of Barker Cypress Road, Cypress, Harris County, Texas 77433


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute various easements and agreements on behalf of the College related to 0.8549 acres located on the south side of West Road, west of Barker Cypress Road, Cypress, Harris County, Texas 77433 in order to provide utilities, water, and sanitary sewer.

Rationale: On August 2, 2018, the Board approved the sale of a 0.8549 acre tract of land in an amount not less than the April 2018 appraised value of $228,217. The subject tract is under contract, and during the feasibility period the College is requesting to assist the purchaser with obtaining utility, water, and sanitary sewer easements over the College’s remaining property. The College benefits from having close access to utilities, water and sanitary sewer for the remaining College property.

Fiscal Impact: The purchaser of the tract of land is responsible for the expenses related to the installation of all of the utilities, water, and sanitary sewer.


Exhibit "P"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Contracts on Behalf of Lone Star College (the “College”) to Purchase Facilities Management Services Programs for Lone Star College-North Harris (“LSC-North Harris”) and Related Satellite Centers


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute contracts on behalf of the College to purchase facilities management services programs for LSC-North Harris, related satellite centers, and additional locations from ABM Texas General Services, Inc. (“ABM”), 11651 Plano Road, Suite 200 Dallas TX 75243, in a sum not exceeding $20,656,603 over a five-year period, with additional funds for out of scope work services and repairs in a sum not exceeding $1,000,000 for a total sum not exceeding $21,656,603 over a five-year period, and if negotiations cease for any reason with ABM, that the Board of Trustees authorize the Chancellor or designee to negotiate with the next firm in the order of selection ranking with a score of not less than 70 until a contract is executed.

Rationale: LSC-North Harris utilizes a facilities management company to manage operations at the main campus and the related satellite centers. Services include, but are not limited to, heating, ventilation, air conditioning (“HVAC”) maintenance, water treatment services, generator maintenance, janitorial services, and lawn care services. The contractor provides all supplies, equipment, and skills necessary to complete all services. The contractor manages any sub-contractors hired to perform non-self-performed tasks as specified in the Request for Proposals (“RFP”).

This purchase is in compliance with Texas Education Code §44.031, a RFP #584 was publically advertised by the College and five responses were received. The College conducted evaluations based on cost, qualifications, experience, and service needs met; references; quality of services; the extent to which certified historically underutilized business (“HUB”), minority and/or veteran or women-owned business are utilized; past performance; long-term cost; enhanced services; completeness; and thoroughness of response. Onsite presentations were made by four bidders.

The College reserves the right to cancel any agreement upon 30 days written notice with or without cause. Additional locations may be added during the term of the agreement under the same contract terms and conditions.

Exhibit "Q"

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

Staff Resource: Gerald Napoles 281-618-5444 Jennifer Mott 832-813-6512


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute an Amendment on Behalf of Lone Star College (the “College”) to Purchase Additional Facilities Management Services for Additional Locations


That the Board of Trustees authorize the Chancellor or Designee to amend the contract on behalf of the College to purchase additional facilities management services with Jones Lang LaSalle, Inc. (“JLL”), 1400 Post Oak Blvd., Suite 1100, Houston, TX 77056 for a sum not exceeding $550,000 for a revised total sum not exceeding $11,069,000 for a five-year period and to authorize additional locations.

Rationale: On November 5, 2015, the Board of Trustees authorized the Chancellor or designee to negotiate and execute a contract with JLL to purchase facilities management services for space at Lone Star College-University Park (“LSC-University Park”), occupied by Lone Star College-System Office (“LSC-System Office”) employees and non-academic lease partners, through a formal Request for Proposal (“RFP”) bid process in compliance with Texas Education Code 44.031 for a sum not exceeding $8,000,000 for a five-year period.

On February 1, 2018, the Board of Trustees authorized the Chancellor or designee to amend the contract on behalf of the College to purchase additional facilities management services in a sum not exceeding $2,519,000 for a revised sum not exceeding $10,519,000 for a five-year period. The College added additional janitorial and landscape services.

The request to amend the contract and authorize additional locations allows the College to add the LSC-Fairbanks Center and include or exclude any other location as needed to the agreement for the remainder of the five-year period.

Fiscal Impact: Funds for this purchase are included in the approved FY 2019 LSC-CyFair operating budget. Funds for subsequent years will be included in future proposed budgets.

Staff Resource: Seelpa Keshvala 281-290-3940Jennifer Mott 832-813-6512

Exhibit "R"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Purchase Additional Voice and Data Communication Cabling Services for Lone Star College (the “College”)


That the Board of Trustees authorize the Chancellor or designee to purchase additional voice and data communication cabling services for the College in a sum not exceeding $1,000,000 for a revised sum not exceeding $2,500,000 over a five-year period.

Rationale: In November 2014, the Board of Trustees authorized the Chancellor or designee to negotiate and execute master service agreements (“MSA”) for the purchase of voice and data communication cabling services for a five-year period from the vendors listed below. In addition, the Chancellor or designee was authorized to negotiate and execute specific project scope of works agreements (“SOW”) with these vendors.

Company Address MCA Communications 525 Northville Street

Houston, TX 77037 Network Cabling Services, Inc. 12626 Fuqua Street

Houston, TX 77034 Netversant Solutions II, LLC 9750 W Sam Houston Parkway N.

Suite 100 Houston, TX 77064

An increase is needed due to increased renovations, construction, and audio visual system installations.

This purchase is in compliance with Texas Education Code §44.031. A Request for Proposals (“RFP”) #346 was advertised and issued by the College to twenty-eight registered cabling vendors and four responses were received. The proposals were evaluated based on cost, qualifications, relevant references, quality of services, past performance, the extent to which certified historically underutilized businesses (“HUB”), minority and/or veteran and women owned businesses are utilized, long term cost, and completeness and thoroughness of the proposal.

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

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

Exhibit "S"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract on Behalf of Lone Star College (the “College”) to Purchase Resume Distribution Services for the Workforce Education Programs


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute a contract on behalf of the College to purchase resume distribution services from MyOpenJobs, LLC, 12200 Ford Road, Suite 100, Dallas TX 75234 in a sum not exceeding $267,100. The term of this award is for an initial three-year period with the option to renew for two additional one-year periods.

Rationale: GradCast, a division of MyOpenJobs, LLC provides a process to distribute resumes of students, who will complete a Career and Technical Education Associate’s degree, certificate, or diploma program, to potential employers that operate within specific areas of the United States as defined by each graduate. The services include a web-based system to assist the College in managing, tracking, and reporting on the distribution of these resumes, the relationships the College has with potential employers, and the post-graduation employment data collected from the College graduates.

Each graduate may distribute their individual resume to up to 100 employers in a one-time distribution. All other job boards require the employer to register, login, make a purchase, and post their available jobs. GradCast does not require this as they have built a proprietary database of over 610,000 employers in 30 specific careers in technology education fields of study. GradCast automatically contacts graduates through a series of automatic emails, text messages, and phone calls to help gather this information to be provided to the College.

Pursuant to Texas Education Code Subchapter B, §44.031 a (i), a sole source purchase is justified for an item for which competition is precluded because of existence of a patent, copyright, secret process, or monopoly.

Fiscal Impact: Funds for these purchases are included in the approved FY 2019 LSC-External and Employer Relations operational budget. Funds for subsequent years will be included in future proposed budgets.

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

Exhibit "T"


Request: Consideration of Approval to Modify the Language in the Previously Approved Agenda Item for Additional Design Services with Architectural Firm Rey de la Reza Architects for Lone Star College System Office-University Park (“SO-UP”)


That the Board of Trustees approve the modification of language in the previously approved agenda item dated November 2, 2017 for the purchase of architectural services from Rey de la Reza Architects (“RdlRA”), 1245 West 18th Street, Houston, Texas 77008 to allow for additional amendments for additional architectural services. This language modification request will not change the previously approved sum not exceeding $382,876.

Rationale: On November 2, 2017, the Board approved the request to enter an amendment to the contract to provide additional design services for SO-UP projects. This firm was originally selected through a formal Request for Qualifications (“RFQ”) process in compliance with Texas Government Code §2254.004.

This request is to allow for modification to the wording of the November 2, 2017 board authorization by allowing additional amendments to the contract for the previously authorized sums.

The table below shows the history of authorizations for the contract:

RdlRA Contract Summary

Board Approval Description Sum

Original 4/9/2015 Architectural Design Services @ LSC-UP

$118,500

Language Modification

5/5/2016 Architectural & CMAR Services

$0.00

Board Approved 1st Amendment

11/2/2017 Ratification of Service Amounts

$64,376

Board Approved 1st Amendment

11/2/2017 Additional Design Services, LSC-SO-UP

$79,454

Unused Authorization

11/2/2017 Additional Design Services, LSC-SO-UP

$120,546

Total $382,876

Exhibit "U"

Fiscal Impact: Funds for this purchase are available from the 2014 General Obligation

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


Request: Consideration of Approval to Authorize the Chancellor or Designee to Amend the Contract on Behalf of Lone Star College (the “College”) for Additional Construction Services with Brookstone, LP for the Lone Star College-CyFair (“LSC-CyFair”) Westway Park Technology Center


That the Board of Trustees authorize the Chancellor or designee to amend the contract on behalf of the College for additional construction services with Brookstone, LP, 3715 Dacoma Street, Houston, TX 77092 for the LSC-CyFair Westway Technology Center in a sum not exceeding $200,000, for a revised total sum not exceeding $7,740,000.

Rationale: On December 7, 2017, the Board approved the execution of a contract with Brookstone, LP for the purchase of construction services for the LSC-CyFair Westway Park Technology Center. Construction services for the Westway Park Technology Center originally consisted of a 59,000 square foot interior buildout of an existing three-story shell building with classrooms, training labs, and facility offices.

This proposed amendment is for lighting requirements and additional wayfinding signage.

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

Brookstone, LP Contract

Summary Board

Approval Description Sum Original 12/7/2017 Construction Services $6,425,000 Board Approved 1st Amendment

4/5/2018 Add structured cabling services for facility and mock data room

$715,000

Board Approved 2nd Amendment

8/2/18 Additional Construction Services for Unknown Conditions

$250,000

Board Approved 3rd Amendment

11/1/2018 Additional Construction Services – Inspection Safety Requirements

$150,000

Proposed Amendment

2/7/2019 Additional Lighting Requirements and Wayfinding Signage

$200,000

Total $7,740,000

Exhibit "V"

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



Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute a Contract Amendment on Behalf of Lone Star College (the “College”) to Purchase Financial Aid File Review and Verification Services


That the Board of Trustees authorize the Chancellor or Designee to negotiate and execute a contract on behalf of the College to purchase financial aid file review and verification services with Global Financial Aid Services (“Global”), 12268 Intraplex Parkway, Gulfport, MS 39502 for a sum not exceeding $75,000 through April 30, 2019 for a total revised sum not exceeding $345,000.

Rationale: At the November 3, 2016 meeting, the Board of Trustees authorized the Chancellor or designee to negotiate and execute a contract on behalf of the College to purchase continued services in a sum not exceeding $270,000 for a one-year period. The additional year was required to allow sufficient time for the College to bid these services.

At the October 4, 2018 meeting, the Board of Trustees authorized the Chancellor or designee to negotiate and execute a contract on behalf of the College to purchase financial aid review and verification services with ProEducation Solutions, LLC for a sum not to exceed $1,900,000 over a five year period.

The College is currently in the midst of transitioning services. This request will allow the College to have continued services during transition without interruption.

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


Exhibit "W"


Request: Consideration of Approval to Ratify the Emergency Purchase of Repair Services to Restore the Hot Water Loop and Heating, Ventilation, and Air Conditioning (“HVAC”) System for Lone Star College-North Harris (“LSC-North Harris”)


That the Board of Trustees ratify the emergency purchase of repair services to restore the hot water loop and HVAC system for LSC-North Harris with TD Industries Inc., 13850 Diplomat Drive, Dallas, TX 77040 in a sum not exceeding $155,000.

Rationale: This repair service was required to restore the hot water loop and HVAC system to the LSC-North Harris campus. The campus boiler plant was shut down and temporary measures were taken to mitigate the flooding and water damage. TDI bypassed the main hot water feed, controlled the flooding, and utilized secondary hot water feeds to restore services to the affected campus buildings.

This purchase was deemed an emergency and approved by the Chancellor and Chief Financial Officer as an emergency purchase under Board Policy Section III D.2.6.(c), which now requires board ratification.

Fiscal Impact: Funds for this purchase were used from the approved FY 2019 Repair and Replacement budget.

Staff Resource: Gerald Napoles 281-618-5444Jennifer Mott 832-813-6512

Exhibit "X"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute an Interlocal Agreement on Behalf of Lone Star College (the “College”) with the University of Texas Petroleum Extension Service (“UT-PETEX”)


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute an Interlocal Agreement on behalf of the College with UT-PETEX for the College to lease an area to UT-PETEX at Lone Star College-University Park (“LSC-University Park”).

Rationale: This collaborative relationship will allow Lone Star College-Corporate College, Lone Star College-Small Business Development Center and UT-PETEX to work together in providing training and consulting services to meet workforce needs and assist with company growth. The Interlocal Agreement will include a non-compete clause, will define the collaborative relationship, and will be followed by a lease agreement for office and instructional space at LSC-University Park.

Approval from the Board of Trustees is sought because this Interlocal Agreement will be with another Texas public higher education institution.

Fiscal Impact: The Interlocal Agreement has no fiscal impact, but the lease will have a fiscal impact commensurate with a fair market value assessment of the space and or equivalent equitable compensation to the College. The fair market value for the leased space is estimated at $15.75 per square foot.

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

Exhibit "Y"


Request: Consideration of Approval to Authorize the Chancellor or Designee to Negotiate and Execute Contracts on Behalf of Lone Star College (the “College”) to Purchase Real Estate and to Negotiate and Execute Agreements and Easements Related to Property for a Future College Location in Harris County, Texas


That the Board of Trustees authorize the Chancellor or designee to negotiate and execute one or more contracts on behalf of the College to purchase real estate in Harris County, Texas for a future College location. The property, approximately 200 acres, will be purchased at or below appraised value for a sum not exceeding $14,000,000. In addition, the Board of Trustees authorize the Chancellor or designee to negotiate and execute any required Agreements and Easements with the property owner(s), improvement district(s), municipal utility district(s), and utility providers necessary for access and utility service to the future College site.

Rationale: Due to population growth and demand for quality, low-cost education, real estate will be held for the purpose of a possible future new College campus. The College campus is anticipated to be a comprehensive campus including administrative space, classrooms, labs, computer labs, food service, offices, a data center and collaborative workspaces allowing students to experience real-world work environments.

The College will retain professional engineering and surveying firms to perform due diligence on one or more properties. Additionally, market analyses and appraisals will be performed.

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


Exhibit "Z"

Personnel Report and Consideration No. 1 (ACTION ITEM 21) Board Meeting 2-7-19

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


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

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

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

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

Exhibit "aa"

Employment Contracts

Name Job Title

Not-to-Exceed

Contract Sum

Hire Date

Blankenship, Sidney Workforce Skilled Trade Instructor – CISCO $ 53,485 11/16/2018 Craft, Raymond Director of Education Services and Partnerships $ 74,380 12/1/2018 Dudley, Christopher Dean of Student Services $ 85,960 11/1/2018 Eslinger, Nichole Director of Human Resources $ 74,380 11/1/2018 Galvan, Ovidio Dean of Student Services $ 85,960 11/16/2018 Mullen, Brian Executive Director of Marketing Social Content and

Strategies $ 106,800 11/1/2018

Financial Report and Consideration No. 1 Board Meeting 2-7-19

Report: Monthly Financial Statements

The financial statements for the months ended December 31, 2018 and November

30, 2018 and the quarterly investment report for the period ending November 30,

2018 are presented for Board review.

Exhibit "bb"

LONE STAR COLLEGE

Statement of Revenues and ExpendituresGeneral and Auxiliary FundsYTD December 31, 2018Unaudited

PRIOR YEAR

% ACTUAL PRIOR YEAR % ACTUAL

TO BUDGET ACTUAL TO BUDGET

FORECASTED FISCAL YTD 33% FY FISCAL YTD 33% FY

BUDGET VARIANCE ACTUAL ELAPSED 12/31/2017 ELAPSED

REVENUES:

State Appropriations $ 77,983,684 $ (1,693) $ 33,532,257 43.0% $ 33,533,950 43.0%

Tuition and Fees 124,416,026 (4,137,109) 53,701,828 43.2% 53,837,562 42.6%

Taxes 161,159,785 64,501,542 40.0% 64,768,648 42.6%

Investments 1,660,907 1,036,798 587,433 35.4% 292,789 44.9%

Product/Service 6,598,334 178,810 2,299,063 34.8% 2,363,336 32.9%

Misc Revenues 9,365,452 162,062 3,927,028 41.9% 3,121,505 33.2%

Total Revenues 381,184,188 (2,761,132) 158,549,151 41.6% 157,917,790 42.3%

EXPENDITURES:

Full Time Faculty 72,379,678 (593,102) 23,911,076 33.0% 22,821,384 32.2%

Part Time Faculty 30,841,217 13,137,156 42.6% 13,633,632 43.2%

Full Time Staff 114,282,866 (654,375) 35,858,176 31.4% 33,310,741 30.6%

Part Time Staff 12,708,734 3,318,500 26.1% 3,134,228 28.4%

Staff Benefits 34,605,544 9,996,539 28.9% 9,672,664 28.7%

Other Employee Benefits 2,728,253 1,310,303 48.0% 1,301,352 96.8%

Services 43,543,666 12,963,730 29.8% 11,028,074 27.3%

ProfDev/Travel 3,816,019 892,695 23.4% 526,491 15.0%

Supplies 10,894,268 2,857,107 26.2% 2,311,154 21.3%

Monthly Charges 7,197,497 840,025 11.7% 826,939 13.3%

Utilities 9,930,644 2,705,956 27.2% 2,114,169 21.0%

Other 16,813,890 (2,957,445) 1,360,618 8.1% 1,109,304 6.8%

Non-Capital Equipment 6,052,388 365,699 6.0% 738,445 11.6%

CIP Land/Building 62,550 19,965 31.9% 0 0.0%

Capital Expenditures 302,400 54,417 18.0% 44,827 12.4%

Furniture, Fixture, Equipment 1,964,065 31,501 1.6% 6,719 0.9%

Total Expenditures 368,123,679 (4,204,922) 109,623,463 29.8% 102,580,123 29.1%

Other Changes - Debt Service Transfers 8,200,000 - 2,285,113 2,214,813

Other Changes - R&R Transfers 5,642,409 - 5,642,409 5,470,000

Total Operating Transfers 13,842,409 - 7,927,522 7,684,813

Total Expenditures & Transfers 381,966,088 (4,204,922) 117,550,985 110,264,936

TOTAL NET INCREASE IN FUND BALANCES $ (781,900) $ 1,443,790 $ 40,998,166 $ 47,652,854

LONG TERM CASH RESERVES: FORECAST

Revised Forecasted Net Increase in Fund Balance $ 661,890

FY 2019 "One-Time" Cash Transactions (1,823,669)

Elimination of Non Cash Transactions

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

Forecasted Cash Reserves, 8/31/2019 $ 65,508,415

LONG TERM CASH RESERVES AS A % OF

BUDGETED EXPENDITURES 17.8%

2

LONE STAR COLLEGE

Balance Sheet

December 31, 2018

Unaudited

GASB Memorandum Memorandum

General & Reporting Totals Totals

ASSETS Restricted Entries (*) Current Year Prior Year

Cash, cash equivalents & investments $ 121,044,578 $ 142,583,578 $ $ 263,628,156 $ 318,480,922

Accounts receivable, net 105,662,084 53,417,640 5,628,011 164,707,735 148,298,082

Prepaid and deferred expenses 1,482,788 - 1,482,788 1,667,409

Inventories, at cost - - -

Capital assets, net - - 890,857,141 890,857,141 842,837,716

TOTAL ASSETS 228,189,450 196,001,218 896,485,152 1,320,675,820 1,311,284,129

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

TOTAL ASSETS AND DEFERRED OUTFLOWS $ 228,189,450 $ 196,001,218 $ 913,674,378 $ 1,337,865,046 $ 1,329,657,506

LIABILITIES AND FUND BALANCES

LIABILITIES:

Accounts payable $ 26,946,119 $ (225,257) $ 26,720,862 $ 14,766,909

Deferred revenues 91,694,327 33,505,899 - 125,200,226 116,344,601

Accrued compensable absences payable 10,550,072 107,581 - 10,657,653 4,586,176

Accrued interest payable - 12,097,681 - 12,097,681 12,635,016

Bonds payable - - 740,267,505 740,267,505 811,270,472

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

Assets held in custody for others - 7,694,563 - 7,694,563 7,640,546

L/T Due to Other Local Government - 16,610,156 - 16,610,156 16,378,940

TOTAL LIABILITIES 129,190,518 69,790,623 876,776,839 1,075,757,980 1,046,116,800

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

TOTAL LIABILITIES AND DEFERRED INFLOWS 129,190,518 69,790,623 908,866,512 1,107,847,653 1,056,779,354

FUND BALANCES:

Unrestricted Operating (9,537,962) - - (9,537,962) 1,933,112

Restricted for Technology 6,761,958 - - 6,761,958 5,648,190

Restricted for Student Activity 1,945,845 - - 1,945,845 1,943,936

Unrestricted Auxiliary 2,125,911 - - 2,125,911 1,469,437

Unrestricted Tenant Related 8,338,361 - - 8,338,361 7,175,997

Restricted Operating Cash - Short Term Reserves 56,056,446 - - 56,056,446 63,626,374

Restricted Operating Cash - Long Term Reserves 33,308,373 - - 33,308,373 24,200,000

Restricted for Grants - (13,639,286) - (13,639,286) 1,489,576

Restricted for Debt Service - 36,931,773 - 36,931,773 69,255,439

Restricted for Construction - 102,918,108 - 102,918,108 115,527,943

TOTAL FUND BALANCES 98,998,932 126,210,595 4,807,866 230,017,393 272,878,152

TOTAL LIABILITIES, DEFERRED INFLOWS AND

FUND BALANCES $ 228,189,450 $ 196,001,218 $ 913,674,378 $ 1,337,865,046 $ 1,329,657,506

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

Auxiliary

3

LONE STAR COLLEGE

Statement of Revenues and Expenditures

Fund 35 Harvey Recovery

PROFORMA from inception to 12.31.18

Unaudited

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

ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL

REVENUES:

Revenue 11,097,716$ - - - - - - - 11,097,716

Total Revenues 11,097,716$ - - - - - - - 11,097,716

EXPENDITURES:

Buildings 8,744$ 49,733 8,585,336 17,566 5,201 796,629 10,671 9,473,880

Contracts 782,879 1,832 9,185,439 49,212 65,472 10,855 10,095,688

Equipment 565,971 2,549,298 200,761 3,316,029

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

Personnel 272,692 9,056 4215 14,531 12,905 21,946 9,270 30,084 374,699

Supplies 12,574 1,567 529,633 5,755 1,171 5,876 556,577

Travel 1,452 203 791 2 2,447

-

Total Expenditures 3,148,362$ 62,391 20,854,711 20,286 80,853 98,495 1,042,515 40,757 25,348,371

FUND BALANCE - Increase (Decrease) 7,949,354$ (62,391) (20,854,711) (20,286) (80,853) (98,495) (1,042,515) (40,757) (14,250,655)

Encumbrances (26,316) - (21,656,311) - - (1,638) (459,875) (2,500) (22,146,640)

ADJUSTED FUND BALANCE 7,923,038$ (62,391) (42,511,022) (20,286) (80,853) (100,133) (1,502,390) (43,257) (36,397,294)

4

LONE STAR COLLEGE

Balance Sheet


As of 12.31.18

Unaudited

All Locations

ASSETS

Cash & Cash Equivalents $

Accounts receivable, net -

Prepaid and deferred expenses -

TOTAL ASSETS


LIABILITIES:

Accounts payable $ 43,735

Due To Others 14,206,920

TOTAL LIABILITIES 14,250,655

TOTAL FUND BALANCE (14,250,655)

TOTAL LIABILITIES AND FUND BALANCE $

5

DEPOSITORY $ 2,000,000

Operating Cash - Subtotal 2,000,000$

POOLS $ 52,211,199

MONEY MARKET ACCOUNTS 1,845,247

Operating Short Term Cash ReservesSubtotal 54,056,446$

US GOVT. AGENCIES $ 28,541,289

MUNICIPAL BONDS 4,767,084

Operating Long Term Cash Reserves Subtotal $ 33,308,373

TO TAL 89,364,819$

O PERATING FUNDS 12/31/2018

LO NE STAR CO LLEGE

SUMMARY O F O PERATING FUNDS

AS O F DECEMBER 31, 2018

OPERATING SHORT TERM CASH

OPERATING LONG TERM CASH RESERVES

6

QUARTERLY INVESTMENT REPORT

FOR THE QUARTER ENDED

November 30, 2018

Prepared byFinance and Operations Department

/s/ Jennifer MottJennifer Mott, CFA Chief Financial Officer and Vice Chancellor, Finance & Operations

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

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

7

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORTAS OF NOVEMBER 30, 2018

Quarter End Results by Investment Category:

Portfolio Book Value Unrealized Market Value Portfolio Book Value Unrealized Market ValueType of Security % 11/30/2018 Gains / (Losses) 11/30/2018 % 8/31/2018 Gains / (Losses) 8/31/2018

Investment Pools, MMKT and Depository 61.6% 138,039,579$ -$ 138,039,579$ 66.9% 184,696,344$ -$ 184,696,344$ Securities 38.4% 85,905,717 284,944 86,190,661 33.1% 91,670,194 (90,874) 91,579,320 Portfolio Total 100.0% 223,945,296$ 284,944$ 224,230,240$ 100.0% 276,366,538$ (90,874)$ 276,275,664$

TexPool 2.39% TexPool 2.18%Logic 2.33% Logic 2.18%Lone Star 2.41% Lone Star 2.22%Southside 2.31% Southside 2.08%

NOTES:1) Yields for the above referenced accounts vary daily.2) The benchmark for the Unrestricted and Restricted Funds is the 90 day U.S. Treasury Bill. As of November 30, 2018 the rate was 2.32%.

Average Yield as of November 30, 2018 Average Yield as of August 31, 2018

8

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORTFOR THE QUARTER ENDED NOVEMBER 30, 2018

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

Date Date Amount Yield 8/31/2018 8/31/2018 Payments Purchased Matured Amortization 11/30/2018 Gain / (Loss) 11/30/2018INVESTMENT POOLS, MMKT & DEPOSITORY

TexPool 9/23/1993 N/A N/A N/A 214,137$ 214,137$ 1,131$ -$ -$ -$ 215,268$ -$ 215,268$ TexPool Prime 9/23/1993 N/A N/A N/A 4,867,215 4,867,215 20,825 26,380,378 27,510,000 - 3,758,418 - 3,758,418$ Logic 9/03/1996 N/A N/A N/A 8,593,661 8,593,661 46,116 3,616 753,616 - 7,889,777 - 7,889,777$ Lone Star-Govt 3/29/2001 N/A N/A N/A 519,597 519,597 823 7,558,755 8,078,552 - 623 - 623$ Lone Star-Corporate 3/29/2001 N/A N/A N/A 1,066,992 1,066,992 6,133 - - - 1,073,125 - 1,073,125$ Lone Star-Corporate Plus 1/26/2001 N/A N/A N/A 152,343,706 152,343,706 764,868 68,093,016 112,634,635 - 108,566,955 - 108,566,955$ *LSCS-Corp Plus_AldineISD 12/14/2016 N/A N/A N/A 15,260,009 15,260,009 85,534 - 2,651,530 - 12,694,013 - 12,694,013$ Southside - MMA 4/27/2011 N/A N/A N/A 1,831,027 1,831,027 10,373 - - - 1,841,400 - 1,841,400$ JPMC-Depository 9/01/2016 N/A N/A N/A - - - - - - 2,000,000 - 2,000,000

TOTAL 184,696,344 184,696,344 935,803 102,035,765 151,628,333 - 138,039,579 - 138,039,579

COMMERCIAL PAPER

General Elec. 4/25/2018 9/28/2018 3,000,000 2,969,840 2,969,840 - - 2,969,840 - - - - JP Morgan Sec 10/16/2018 7/12/2019 5,000,000 - - - 5,000,000 - (101,996) 4,898,004 (101,996) 5,000,000 JP Morgan Sec 10/16/2018 7/12/2019 5,000,000 - - - 5,000,000 - (101,622) 4,898,378 (101,622) 5,000,000 JP Morgan Sec 10/16/2018 7/1/2019 5,000,000 - - - 5,000,000 - (97,288) 4,902,712 (97,288) 5,000,000 Toyota MTR 10/16/2018 7/12/2019 5,000,000 - - - 5,000,000 - (100,501) 4,899,499 (100,501) 5,000,000

TOTAL 2,969,840 2,969,840 - 20,000,000 2,969,840 (401,407) 19,598,593 (401,407) 20,000,000

BONDS

Municipal Bond 02/16/2018 7/1/2019 3,170,000 2.23% 3,158,017 3,167,084 - - - - 3,167,084 (7,925) 3,159,159 Municipal Bond 03/30/2017 3/15/2020 1,600,000 1.60% 1,570,352 1,600,000 - - - - 1,600,000 (23,056) 1,576,944 TOTAL 4,728,369 4,767,084 - - - - 4,767,084 (30,981) 4,736,103

US TREASURY NOTES

Treasury Notes 11/03/2017 11/15/2018 3,000,000 1.46% 2,994,894 3,000,000 - - 3,000,000 - - - - Treasury Notes 02/13/2018 09/15/2018 3,000,000 1.76% 2,994,827 2,986,874 - - 2,986,874 - - - -

5,989,721 5,986,874 - - 5,986,874 - - - -

US GOVT. AGENCIES

FHLB 10/7/2016 10/01/2018 3,000,000 0.90% 2,996,727 3,000,000 - - 3,000,000 - - - - FHLB 10/11/2016 10/11/2018 3,000,000 1.00% 2,996,034 3,000,000 - - 3,000,000 - - - - FHLMC 1/25/2017 01/25/2019 1,600,000 1.35% 1,594,413 1,600,000 - - - - 1,600,000 (3,485) 1,596,515 FHLB 1/27/2017 12/14/2018 3,000,000 1.28% 2,995,740 3,000,000 - - - - 3,000,000 (513) 2,999,487 FFCB 2/13/2017 02/13/2019 3,000,000 1.21% 2,984,526 3,000,000 - - - - 3,000,000 (7,161) 2,992,839 FAMCA 2/21/2017 08/21/2019 3,000,000 1.45% 2,968,869 3,000,000 - - - - 3,000,000 (24,675) 2,975,325 FNMA 2/13/2018 09/18/2018 6,000,000 1.76% 5,999,226 6,004,235 - - 6,004,235 - - - FICO STRIP 2/13/2018 11/02/2018 6,000,000 1.90% 5,976,756 5,918,760 - - 5,918,760 - - - - FHLMC 4/3/2018 09/27/2019 3,000,000 2.27% 2,967,609 2,966,430 - - - - 2,966,430 4,173 2,970,603 FNMA 4/3/2018 11/26/2019 3,000,000 2.23% 2,970,516 2,976,780 - - - - 2,976,780 (6,360) 2,970,420 FHLB-Step Up 4/20/2018 10/20/2020 5,000,000 2.97% 4,992,875 5,000,000 - - - - 5,000,000 (6,040) 4,993,960 FAMCA 5/21/2018 10/21/2019 4,000,000 2.51% 3,995,872 3,998,080 - - - - 3,998,080 (7,028) 3,991,052 FRMDN 8/1/2018 11/01/218 3,500,000 2.04% 3,487,341 3,482,111 - - 3,482,111 - - - - FHLB 8/28/2018 8/28/2020 3,000,000 2.70% 2,995,386 3,000,000 - - - - 3,000,000 (10,701) 2,989,299 FAMCA 8/31/2018 8/28/2019 3,000,000 2.48% 2,998,500 3,000,000 - - - - 3,000,000 (3,102) 2,996,898 FAMCA 4/2/2018 4/15/2019 10,000,000 2.18% 9,988,400 10,000,000 - - - - 10,000,000 (7,510) 9,992,490 FAMCA 4/2/2018 4/15/2019 15,000,000 2.18% 14,982,600 15,000,000 - - - - 15,000,000 (11,265) 14,988,735 FFCB 10/16/2018 10/10/2019 5,000,000 2.68% - - - 5,000,000 - (1,250) 4,998,750 (1,815) 4,996,935

TOTAL 77,891,390 77,946,396 5,000,000 21,405,106 (1,250) 61,540,040 (85,482) 61,454,558

SUMMARYINVESTMENT POOLS, MMKT & DEPOSITORY 184,696,344 184,696,344 935,803 102,035,765 151,628,333 - 138,039,579 - 138,039,579 COMMERCIAL PAPER 2,969,840 2,969,840 - 20,000,000 2,969,840 (401,407) 19,598,593 (401,407) 20,000,000 BONDS 4,728,369 4,767,084 - - - - 4,767,084 (30,981) 4,736,103 US TREASURY NOTES 5,989,721 5,986,874 - - 5,986,874 - - - - US GOVT. AGENCIES 77,891,390 77,946,396 - 5,000,000 21,405,106 (1,250) 61,540,040 (85,482) 61,454,558 PORTFOLIO TOTAL 276,275,664$ 276,366,538$ 935,803$ 127,035,765$ 181,990,153$ (402,657)$ 223,945,296$ (517,870)$ 224,230,240$

Period Book / Market Transactions

9

LONE STAR COLLEGE INVESTMENT PORTFOLIO COMPOSITIONFOR THE QUARTER ENDED NOVEMBER 30, 2018

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

/s/ Tammy Cortes

Texpool2%

LSIP52%

Logic4%

MMA1%

JPMC-Dep1%

CP9%

Muni Bond2%

US Govt. Agencies

29%

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

10

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORT BY FUNDFOR THE QUARTER ENDED NOVEMBER 30, 2018

FUND: OPERATING (UNRESTRICTED)

OPERATING CASHBeginning Beginning Ending Period Ending

Purchase/Opened Maturity Face Buy Market Value Book Value Interest Securities Securities Disc. / Prem. Book Value Unrealized Market ValueDate Date Amount Yield 8/31/2018 8/31/2018 Payments Purchased Matured Amortization 11/30/2018 Gain / (Loss) 11/30/2018

INVESTMENT POOLS, MMKT & DEPOSITORY

TexPool Prime 9/23/1993 N/A N/A N/A 4,867,215$ 4,867,215$ 20,825$ 26,380,378$ 27,510,000$ -$ 3,758,418$ -$ 3,758,418$ Logic 9/03/1996 N/A N/A N/A 8,520,733 8,520,733 45,715 3,596 750,000 - 7,820,044 - 7,820,044 Lone Star-Govt 3/29/2001 N/A N/A N/A 519,045 519,045 823 7,558,755 8,078,000 - 623 - 623 Lone Star-Corporate 3/29/2001 N/A N/A N/A 1,053,277 1,053,277 6,054 - - - 1,059,331 - 1,059,331 Lone Star-Corporate Plus 1/26/2001 N/A N/A N/A 18,832,443 18,832,443 73,156 64,521,001 80,836,639 - 2,589,961 - 2,589,961 Southside - MMA 4/27/2011 N/A N/A N/A 1,831,027 1,831,027 10,373 - - - 1,841,400 - 1,841,400 JPMC-Depository 9/01/2016 N/A N/A N/A - - - - - - 2,000,000 - 2,000,000

TOTAL 35,623,740 35,623,740 156,946 98,463,730 117,174,639 - 19,069,777 - 19,069,777

CASH RESERVES

COMMERCIAL PAPER

General Elec. 4/25/2018 9/28/2018 3,000,000 2.38% 2,969,840 2,969,840 - - 2,969,840 - - - -

TOTAL 2,969,840 2,969,840 - - 2,969,840 - - - -

BONDSMunicipal Bond 03/30/2017 3/15/2020 1,600,000 1.60% 1,570,352 1,600,000 - - - - 1,600,000 (23,056) 1,576,944 Municipal Bond 02/16/2018 7/1/2019 3,170,000 2.23% 3,158,017 3,167,084 - - - - 3,167,084 (7,925) 3,159,159

TOTAL 4,728,369 4,767,084 - - - - 4,767,084 (30,981) 4,736,103

US TREASURY NOTESTreasury Notes 11/03/2017 11/15/2018 3,000,000 1.46% 2,994,894 3,000,000 - - 3,000,000 - - - - Treasury Notes 02/13/2018 09/15/2018 3,000,000 1.76% 2,994,827 2,986,874 - 2,986,874 - - - -

TOTAL 5,989,721 5,986,874 - - 5,986,874 - - - -

US GOVT. AGENCIESFHLB 10/7/2016 10/01/2018 3,000,000 0.90% 2,996,727 3,000,000 - - 3,000,000 - - - - FHLB 10/11/2016 10/11/2018 3,000,000 1.00% 2,996,034 3,000,000 - - 3,000,000 - - - - FHLMC 1/25/2017 01/25/2019 1,600,000 1.35% 1,594,413 1,600,000 - - - - 1,600,000 (3,485) 1,596,515 FHLB 1/27/2017 12/14/2018 3,000,000 1.28% 2,995,740 3,000,000 - - - - 3,000,000 (513) 2,999,487 FFCB 2/13/2017 02/13/2019 3,000,000 1.21% 2,984,526 3,000,000 - - - - 3,000,000 (7,161) 2,992,839 FAMCA 2/21/2017 08/21/2019 3,000,000 1.45% 2,968,869 3,000,000 - - - - 3,000,000 (24,675) 2,975,325 FNMA 2/13/2018 09/18/2018 6,000,000 1.76% 5,999,226 6,004,235 - - 6,004,235 - - - - FICO STRIP 2/13/2018 11/02/2018 6,000,000 1.90% 5,976,756 5,918,760 - - 5,918,760 - - - - FHLMC 4/3/2018 09/27/2019 3,000,000 2.27% 2,967,609 2,966,430 - - - - 2,966,430 4,173 2,970,603 FNMA 4/3/2018 11/26/2019 3,000,000 2.23% 2,970,516 2,976,780 - - - - 2,976,780 (6,360) 2,970,420 FHLB-Step Up 4/20/2018 10/20/2020 5,000,000 2.97% 4,992,875 5,000,000 - - - - 5,000,000 (6,040) 4,993,960 FAMCA 5/21/2018 10/21/2019 4,000,000 2.51% 3,995,872 3,998,080 - - - - 3,998,080 (7,028) 3,991,052 FRMDN 8/1/2018 11/01/218 3,500,000 2.04% 3,487,341 3,482,111 - - 3,482,111 - - - - FHLB 8/28/2018 8/28/2020 3,000,000 2.70% 2,995,386 3,000,000 - - - - 3,000,000 (10,701) 2,989,299 FAMCA 8/31/2018 8/28/2019 3,000,000 2.48% 2,998,500 3,000,000 - - - - 3,000,000 (3,102) 2,996,898

TOTAL 52,920,390 52,946,396 - - 21,405,106 - 31,541,290 (64,892) 31,476,398

SUMMARY:INVESTMENT POOLS, MMKT & DEPOSITORY 35,623,740 35,623,740 156,946 98,463,730 117,174,639 - 19,069,777 - 19,069,777 COMMERCIAL PAPER 2,969,840 2,969,840 - - 2,969,840 - - - - MUNICIPAL BONDS 4,728,369 4,767,084 - - - - 4,767,084 (30,981) 4,736,103 US TREAS NOTES 5,989,721 5,986,874 - - 5,986,874 - - - - US GOVT. AGENCIES 52,920,390 52,946,396 - - 21,405,106 - 31,541,290 (64,892) 31,476,398

PORTFOLIO TOTAL 102,232,060$ 102,293,934$ 156,946$ 98,463,730$ 147,536,459$ -$ 55,378,151$ (95,873)$ 55,282,278$


11

LONE STAR COLLEGE INVESTMENT PORTFOLIO REPORT BY FUNDFOR THE QUARTER ENDED NOVEMBER 30, 2018

FUND: CONSTRUCTION IN PROGRESS


Date Date Amount Yield 8/31/2018 8/31/2018 Payments Purchased Matured Amortization 11/30/2018 Gain / (Loss) 11/30/2018INVESTMENT POOLS AND MONEY MARKET

Logic-CIP MTN Bond 9/03/1996 N/A N/A N/A 20$ 20$ -$ -$ 20$ -$ -$ -$ -$ Lone Star-Corp Plus Fund 3/29/2001 N/A N/A N/A 105,075,364 105,075,364 526,252 584,361 29,141,579 - 77,044,398 - 77,044,398 Lone Star-Corp Plus Rev. Bon 3/29/2001 N/A N/A N/A 370,128 370,128 1,176 - 371,304 - - - -

SUB-TOTAL 105,445,512 105,445,512 527,428 584,361 29,512,903 - 77,044,398 - 77,044,398

*LSCS-Corp Plus_AldineISD 12/14/2016 N/A N/A N/A 15,260,009 15,260,009 85,534 - 2,651,530 - 12,694,013 - 12,694,013

SUB-TOTAL 15,260,009 15,260,009 85,534 - 2,651,530 - 12,694,013 - 12,694,013

TOTAL 120,705,521 120,705,521 612,962 584,361 32,164,433 - 89,738,411 - 89,738,411

US GOVT. AGENCIESFAMCA 4/2/2018 4/15/2019 10,000,000 2.18% 9,988,400 10,000,000 - - - - 10,000,000 (7,510) 9,992,490 FAMCA 4/2/2018 4/15/2019 15,000,000 2.18% 14,982,600 15,000,000 - - - - 15,000,000 (11,265) 14,988,735 FFCB 10/16/2018 10/10/2019 5,000,000 2.68% - - - 5,000,000 - (1,250) 4,998,750 (1,815) 4,996,935

TOTAL 24,971,000 25,000,000 - 5,000,000 - (1,250) 29,998,750 (20,590) 29,978,160

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

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

SUMMARY:INVESTMENT POOLS AND MONEY MARKET 120,705,521 120,705,521 612,962 584,361 32,164,433 - 89,738,411 - 89,738,411 US GOVT. AGENCIES 24,971,000 25,000,000 - 5,000,000 - (1,250) 29,998,750 (20,590) 29,978,160 COMMERCIAL PAPER - - - 20,000,000 - (401,407) 19,598,593 (401,407) 20,000,000 PORTFOLIO TOTAL 145,676,521$ 145,705,521$ 612,962$ 25,584,361$ 32,164,433$ (402,657)$ 139,335,754$ (421,997)$ 139,716,571$

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


12

LONE STAR COLLEGE

INVESTMENT PORTFOLIO REPORT

FOR THE QUARTER ENDED NOVEMBER 30, 2018

FUND:


Date Date Amount Yield 8/31/2018 8/31/2018 Payments Purchased Matured Amortization 11/30/2018 Gain / (Loss) 11/30/2018INVESTMENT POOLS AND MONEY MARKET

TexPool 9/23/1993 N/A N/A N/A 214,137$ 214,137$ 1,131$ -$ -$ -$ 215,268$ -$ 215,268$ Logic-Debt Service 9/03/1996 N/A N/A N/A 69,311 69,311 401 20 - - 69,732 - 69,732 Logic-R&R 10/01/2017 N/A N/A N/A 3,597 3,597 - - 3,596 - 1 - 1 Lone Star-Govt 3/29/2001 N/A N/A N/A 552 552 - - 552 - - - - Lone Star-Corporate 3/29/2001 N/A N/A N/A 13,715 13,715 79 - - - 13,794 - 13,794 Lone Star-Corporate Plus 1/26/2001 N/A N/A N/A 28,065,771 28,065,771 164,284 2,987,654 2,285,113 - 28,932,596 - 28,932,596

TOTAL 28,367,083 28,367,083 165,895 2,987,674 2,289,261 - 29,231,391 - 29,231,391

SUMMARY:

INVESTMENT POOLS AND MONEY MARKET 28,367,083 28,367,083 165,895$ 2,987,674 2,289,261 - 29,231,391 - 29,231,391 PORTFOLIO TOTAL 28,367,083$ 28,367,083$ 165,895$ 2,987,674$ 2,289,261$ -$ 29,231,391$ -$ 29,231,391$


INTEREST & SINKING

13

LONE STAR COLLEGE TOTAL INVESTMENT PORTFOLIO BOOK VALUEFOUR YEAR COMPARISON THROUGH NOVEMBER 30, 2018

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

/s/ Tammy Cortes

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

0.00

50,000,000.00

100,000,000.00

150,000,000.00

200,000,000.00

250,000,000.00

300,000,000.00

350,000,000.00

400,000,000.00

450,000,000.00

14

November 30, 2018

Financial Statements

15

LONE STAR COLLEGE

Statement of Revenues and ExpendituresGeneral and Auxiliary FundsYTD November 30, 2018Unaudited

PRIOR YEAR

% ACTUAL PRIOR YEAR % ACTUAL

TO BUDGET ACTUAL TO BUDGET

FORECASTED FISCAL YTD 8% FY FISCAL YTD 8% FY

BUDGET VARIANCE ACTUAL ELAPSED 11/30/2017 ELAPSED

REVENUES:

State Appropriations $ 77,983,684 $ $ 26,123,968 33.5% $ 26,125,661 33.5%

Tuition and Fees 124,416,026 (1,166,042) 53,626,347 43.1% 53,912,809 42.6%

Taxes 161,159,785 7,302,354 4.5% 6,286,358 4.1%

Investments 1,660,907 509,909 30.7% 189,512 29.1%

Product/Service 6,598,334 1,795,108 27.2% 1,836,672 25.6%

Misc Revenues 9,365,452 2,734,162 29.2% 2,220,270 23.6%

Total Revenues 381,184,188 (1,166,042) 92,091,848 24.2% 90,571,282 24.2%

EXPENDITURES:

Full Time Faculty 72,216,427 17,876,790 24.8% 17,048,899 24.0%

Part Time Faculty 31,074,515 9,881,571 31.8% 10,210,819 32.3%

Full Time Staff 114,442,720 26,790,806 23.4% 24,926,019 22.9%

Part Time Staff 12,683,211 2,312,490 18.2% 2,245,709 20.4%

Staff Benefits 34,600,509 7,444,920 21.5% 7,232,030 21.5%

Other Employee Benefits 2,727,930 1,166,288 42.8% 1,227,236 91.3%

Services 43,392,108 10,944,680 25.2% 8,537,771 21.2%

ProfDev/Travel 3,777,854 613,571 16.2% 341,482 9.7%

Supplies 10,966,502 2,143,093 19.5% 1,612,334 14.9%

Monthly Charges 7,182,497 638,147 8.9% 511,393 8.2%

Utilities 9,930,644 2,169,066 21.8% 1,498,683 14.9%

Other 17,020,780 (1,166,042) 1,044,985 6.1% 942,590 5.6%

Non-Capital Equipment 5,919,705 221,922 3.7% 594,648 10.2%

CIP Land/Building 62,550 19,965 31.9% 0 0.0%

Capital Expenditures 302,400 39,314 13.0% 37,166 10.5%

Furniture, Fixture, Equipment 1,823,327 21,567 1.2% 0 0.0%

Total Expenditures 368,123,679 (1,166,042) 83,329,175 22.6% 76,966,779 21.8%

Other Changes - Debt Service Transfers 8,200,000 - 2,285,113 2,214,813

Other Changes - R&R Transfers 5,642,409 - 5,642,409 5,470,000

Total Operating Transfers 13,842,409 - 7,927,522 7,684,813

Total Expenditures & Transfers 381,966,088 (1,166,042) 91,256,697 84,651,592

TOTAL NET INCREASE IN FUND BALANCES $ (781,900) $ 0 $ 835,151 $ 5,919,690

LONG TERM CASH RESERVES: FORECAST

Revised Forecasted Net Increase in Fund Balance $ (781,900)

FY 2019 "One-Time" Cash Transactions (1,823,669)

Elimination of Non Cash Transactions

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

Forecasted Cash Reserves, 8/31/2019 $ 64,064,625

LONG TERM CASH RESERVES AS A % OF

BUDGETED EXPENDITURES 17.4%

17

LONE STAR COLLEGE

Balance Sheet

November 30, 2018

Unaudited

GASB Memorandum Memorandum

General & Reporting Totals Totals

ASSETS Restricted Entries (*) Current Year Prior Year

Cash, cash equivalents & investments $ 82,050,179 $ 148,447,339 $ $ 230,497,518 $ 275,019,852

Accounts receivable, net 160,928,688 55,148,951 5,625,597 221,703,236 215,755,442

Prepaid and deferred expenses 1,870,431 - 1,870,431 1,706,857

Inventories, at cost - - -

Capital assets, net - - 892,410,581 892,410,581 844,386,666

TOTAL ASSETS 244,849,298 203,596,290 898,036,178 1,346,481,766 1,336,868,817

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

TOTAL ASSETS AND DEFERRED OUTFLOWS $ 244,849,298 $ 203,596,290 $ 915,225,404 $ 1,363,670,992 $ 1,355,242,194


LIABILITIES:

Accounts payable $ 28,987,156 $ 2,224,410 $ 31,211,566 $ 17,086,726

Deferred revenues 146,523,008 52,598,401 - 199,121,409 192,740,773

Accrued compensable absences payable 10,503,217 114,317 - 10,617,534 4,577,201

Accrued interest payable - 9,393,001 - 9,393,001 9,810,707

Bonds payable - - 740,862,922 740,862,922 811,163,379

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

Assets held in custody for others - 7,752,020 - 7,752,020 7,608,062

L/T Due to Other Local Government - 16,583,013 - 16,583,013 16,360,214

TOTAL LIABILITIES 186,013,381 88,665,162 877,372,256 1,152,050,799 1,121,841,203

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

TOTAL LIABILITIES AND DEFERRED INFLOWS 186,013,381 88,665,162 909,461,929 1,184,140,472 1,132,503,757

FUND BALANCES:

Unrestricted Operating (16,153,681) - - (16,153,681) 4,948,685

Restricted for Technology 7,104,063 - - 7,104,063 6,137,485

Restricted for Student Activity 2,147,677 - - 2,147,677 2,093,481

Unrestricted Auxiliary 2,172,945 - - 2,172,945 1,475,896

Unrestricted Tenant Related 8,186,762 - - 8,186,762 6,938,247

Restricted Operating Cash - Short Term Reserves 19,069,777 - - 19,069,777 15,476,523

Restricted Operating Cash - Long Term Reserves 36,308,374 - - 36,308,374 27,193,562

Restricted for Grants - (11,160,251) - (11,160,251) 5,903,780

Restricted for Debt Service - 19,808,682 - 19,808,682 51,835,087

Restricted for Construction - 106,282,697 - 106,282,697 118,475,010

TOTAL FUND BALANCES 58,835,917 114,931,128 5,763,475 179,530,520 222,738,437

TOTAL LIABILITIES, DEFERRED INFLOWS AND

FUND BALANCES $ 244,849,298 $ 203,596,290 $ 915,225,404 $ 1,363,670,992 $ 1,355,242,194

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

Auxiliary

Subject to Change pending completion of the August 31, 2018 audit.

18

LONE STAR COLLEGE

Statement of Revenues and Expenditures


PROFORMA from inception to 11.30.18

Unaudited

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

ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL

REVENUES:

Revenue 11,097,716$ - - - - - - - 11,097,716

Total Revenues 11,097,716$ - - - - - - - 11,097,716

EXPENDITURES:

Buildings 8,744$ 49,733 6,406,887 17,566 5,201 796,629 10,671 7,295,431

Contracts 780,879 1,832 9,181,890 49,212 65,472 10,855 10,090,139

Equipment 563,007 2,280,890 200,761 3,044,658

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

Personnel 261,815 9,056 2972 14,531 12,905 21,946 9,270 30,084 362,578

Supplies 15,538 1,567 526,058 5,755 1,171 5,876 555,966

Travel 1,282 203 791 2 2,277

-

Total Expenditures 3,135,314$ 62,391 18,399,487 20,286 80,853 98,495 1,042,515 40,757 22,880,099

FUND BALANCE - Increase (Decrease) 7,962,402$ (62,391) (18,399,487) (20,286) (80,853) (98,495) (1,042,515) (40,757) (11,782,383)

Encumbrances (31,404) - (27,239,345) - - - (459,875) (2,500) (27,733,124)

ADJUSTED FUND BALANCE 7,930,998$ (62,391) (45,638,832) (20,286) (80,853) (98,495) (1,502,390) (43,257) (39,515,507)

19

LONE STAR COLLEGE

Balance Sheet


As of 11.30.18

Unaudited

All Locations

ASSETS

Cash & Cash Equivalents $

Accounts receivable, net -

Prepaid and deferred expenses -

TOTAL ASSETS


LIABILITIES:

Accounts payable $ 396,774

Due To Others 11,385,609

TOTAL LIABILITIES 11,782,383

TOTAL FUND BALANCE (11,782,383)

TOTAL LIABILITIES AND FUND BALANCE $

20

DEPOSITORY $ 2,000,000

Operating Cash - Subtotal 2,000,000

POOLS 15,228,377

MONEY MARKET ACCOUNTS 1,841,400

Operating Short Term Cash Reserves

Subtotal 17,069,777

US GOVT. AGENCIES 31,541,290

US TREASURY NOTES -

MUNICIPAL BONDS 4,767,084

Operating Long Term Cash Reserves

Subtotal 36,308,374

TOTAL 55,378,151$

OPERATING FUNDS 11/30/2018

LONE STAR COLLEGE

SUMMARY OF OPERATING FUNDS

AS OF NOVEMBER 30, 2018

OPERATING SHORT TERM CASH

OPERATING LONG TERM

CASH RESERVES

21

Building and Grounds Report Board Meeting 2-7-19

Report: Construction Projects Update

The monthly construction projects update is presented for Board review.

Exhibit "cc"

CONSTRUCTION PROJECTS UPDATE As of February 7, 2019

1. LSC-Kingwood: Hurricane Harvey Recovery:

A renovation of 200,000 sf of the first floors of five of six buildings has reached substantial completion. The architect is AutoArch and design was completed August 2018. The construction firm is Anslow Bryant and construction began July 2018. Classes resumed in the five completed buildings for Spring 2019 with the Library building scheduled for completion and opening in March 2019.

Substantial Completion: Spring 2019 Budget: $53,813,494

2. LSC-University Park: Student Life Renovation: A renovation of 9,583 sf in the Commons Building Level 2, this project will support student life for the college. The architect is RdlR Architects and design was completed November 2017. The construction firm is pending execution of contract for construction to begin February 2019.

Substantial Completion: Summer 2019 Budget: $840,000

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

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

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

4. LSC-Tomball: South Entrance Drive Monument:

A new main entrance monument, sign, and landscaping, this project will support the new Tomball South Drive Entrance completed January 2018. Discussions and a survey are in progress with TxDOT to purchase property.

Substantial Completion: Fall 2019 Budget: $2,650,000

5. LSC-Corporate College: Transportation Institute:

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

Substantial Completion: Fall 2019 Budget: $13,000,000

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

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

Substantial Completion: Summer 2021 Budget: $21,675,000

7. LSC-Montgomery: Student Services Building:

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


8. LSC-Kingwood: Healthcare Instructional Building: A new 60,000 sf building, this project will support a healthcare instructional program. The architect is AutoArch and schematic design began July 2018. The construction firm is Tellepsen.


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