Cochise College Special Governing Board Meeting
Tuesday, November 9, 2004
MINUTES
COCHISE COLLEGE GOVERNING BOARD
SPECIAL MEETING
Tuesday, November 9, 2004
Douglas Campus
5:00 p. m.
1. GENERAL FUNCTIONS
1.01 Call to Order
The meeting was called to order by Jane Strain, Board Chair, at 5:05 p.m.
Board Members Present:
Mrs. Jane Strain
Mr. Juan Flores
Mrs. Jan Guy
Dr. John Eaton
Mr. Bob Nelson
2. NEW BUSINESS
2.01 Study Session – Master Facilities Planning
Dr. Karen Nicodemus gave a PowerPoint presentation (attached) outlining the Master Facilities Planning Process. This facilities plan must serve the district for the future.
The keys to the planning process are formulating assumptions and scenario building. The assumptions the College has made thus far are internal and still need to be validated. This planning process is a dynamic process and will need the participation of the community.
This fall, the College will begin to engage in departmental meetings. Mr. Bowmaster, College Vice President for Administration, will be taking the lead in this pilot process, which will include a space analysis of all departments, adjacencies, comparisons to national standards, and will make future needs forecasts compared to the demographic forecasts and the communities’ interests for the campus or center. The College hopes to complete this part of the planning process in the spring of 2005.
Dr. Nicodemus spoke to the assumptions specific to the Douglas campus. The assumptions must be validated, revised, and/or rejected.
1. The population growth in the Douglas area will be stable or have slight growth over the first half of the next 15 to 20 years.
2. The proportion of traditional age, college-bound students will continue to grow as a greater number of elementary students move through the K-12 pipeline.
3. Local economy will continue to primarily consist of law enforcement activities (Homeland Security, Department of Corrections) and trade of Mexican citizens crossing into Douglas. Some rural, agricultural development within the Elfrida/McNeal area.
4. Distance to the Douglas campus is not a major barrier for Douglas or area residents enrolling in traditional, on-campus programs. Mr. Hoyack has been asked to take the lead in verifying that distance is not an issue for the residents of Douglas to attend the Douglas campus.
5. Student enrollments remain stable or slightly decrease; with some projected increase in traditional age students.
6. Campus facilities designed around a commuter campus, serving the local communities of Douglas, Elfrida/McNeal and surrounding areas.
Core programs primarily consist of general education (with remediation programs), transfer, and limited vocational program offerings in terms of what is the demand to meet the local workforce needs in support of the local economy.
7. On-site housing developed in support of Center for Southwest Learning; modeled after hotel principles versus traditional, student residence halls.
8. Adult Education programs continue to be located off-campus, in Douglas, with additional space created to better serve a border-crossing student population.
In order to be successful, the College must build multiple scenarios, with some areas yet to be analyzed. One area that has been an ongoing discussion is early childhood education center on campus. Dr. Nicodemus also discussed the Athletic program, currently housed on the Douglas campus. A majority of the residents in the residence halls are student athletes. The residence halls in their current condition can not meet the infrastructure demands and student needs.
Dr. Nicodemus then spoke to the assumptions of the Sierra Vista campus. These assumptions also must be validated, revised, and/or rejected.
1. Population growth continues in Sierra Vista area, including southeast and along Highway 90 corridor to Benson. Growth is generated by expansion of Ft. Huachuca as a result of BRAC process and continued relocation of retirees to the area. She explained BRAC, Base Realignment and Closure, which is the federal government’s cost saving measure to evaluate the military posts throughout the world and consolidate, close down, or move other existing posts. The outcome is to be determined by the spring of 2005. The assumption is that Ft. Huachuca will survive and take on additional missions, contracts, etc.
2. Local economy will continue to be driven by high-tech industry related to Ft. Huachuca along with job growth in retail and service sectors.
3. Enrollment growth in traditional-age College students, coupled with senior citizens/retiree enrollments and technical training in support of high-tech industry.
4. Universities’ Changing Directions initiative has a positive impact on community college enrollments/program offerings. As the universities expand their capacity and partnerships with community colleges, more students will choose to attend a community college prior to going to the universities. Students may also choose to attend the community colleges first due to the enrollment restrictions in place at the universities.
5. Development of facilities that provide for future expansion and flexibility around emerging vocational and/or academic programs.
6. Shared use facilities with universities to provide greater access/success in four-year degree programs.
7. Flexibility of space to accommodate future workforce demands. This is more internal to the College to allow for more support services at the campus or throughout the district.
8. Community expectation for full-range campus, including facilities to support quality of life issues such as fitness classes, fine arts, community meeting space, etc. Some of the things that are enjoyed at the Douglas campus are in demand at the Sierra Vista campus.
9. Campus capacity to accommodate special events associated with the College.
The College must build multiple scenarios for the Sierra Vista campus as well as Douglas. The issue of an early childhood education center was discussed again and having an athletic program on the Sierra Vista campus. However, space may be an issue at the Sierra Vista campus. Dr. Nicodemus reviewed an aerial map of the Sierra Vista campus pointing out the current buildings and the 50 useable acres surrounding the campus.
Attention must also be directed towards the College’s relationship with Ft. Huachuca and determining future facility needs related to the same. College needs to consider continuation of courses on post or establishing space on the SVC to accommodate 16-week and 8-week classes. Currently, the College is the only educational institution that has its own building on Ft. Huachuca.
Dr. Nicodemus then spoke to the Extended Learning Campus, formerly known as the Community Campus. This includes areas outside the Douglas and Sierra Vista campuses and Ft. Huachuca. The assumptions specific to the Extended Learning Campus, include the statements below.
1. Growth in the Benson area as result of development along the Highway 90 corridor. There are six major developers who have already purchased land and one is ready to begin construction of approximately 300 homes in the Benson area. An industrial park has been created on Highway 90 and the Abco will be moving from Highway 80 to Highway 90 near the Benson center.
2. Benson areas will serve as the bedroom community to Tucson and Sierra Vista. Other major economic drivers tied to tourism and service industry.
3. Willcox population growth will be stable or have slight growth over the first half of the next 15 to 20 years. Economic indicators continue to focus on agricultural and tourism (service) industry, with possibility of growth in jobs related to location of correctional center in area.
4. Growth in community expectations related to Benson Center. Greater presence of community-based services such as Small Business Development Center, etc.
5. Development/expansion of Willcox Center through strategic partnerships with local community.
6. Willcox Center developed to provide expansion opportunities for future long-term growth (15 to 20 years).
Dr. Nicodemus again spoke of an early childhood education center in the Centers throughout the county. She also added the community-specific unmet needs that the College might be able to fill through these partnerships.
Dr. Nicodemus spoke of the district-wide assumption that the College will successfully integrate a comprehensive technology plan into master facilities plan and flexibility to meet changing educational needs and delivery systems. The College must have an infrastructure to support technology, for example the possibilities of wireless.
Dr. Nicodemus emphasized that this is a dynamic process and the assumptions need to be validated, revised and/or rejected. The College is looking into engaging the services of Applied Economics, a demographer, to help the College with making population projections and with making sure the assumptions are verified around the population growth.
At the conclusion of Dr. Nicodemus’ presentation, Mr. Terry Bowmaster explained financing options to the Governing Board. Cash/fund balance could be used to fund some capital projects but will not be sufficient to fund major projects. He described the four legal options in the State of Arizona for debt: Revenue Bonds, Certificates of Participation, General Obligation Bonds and Leasing.
Mr. Bowmaster briefly described Revenue Bonds and Certificates of Participation. These types of debt are similar except revenue bonds are used when there is a specific source of revenue to be dedicated to service the debt. Certificates of Participation use general revenues, which is tuition and fees.
He then discussed General Obligation Bonds. These bonds require an election to be approved by the voters. If the election is successful, it approves the levying of a secondary property tax levy to pay the principle and interest payments over the years and the citizens of the county would be taxed by a secondary property tax levy. Two community colleges in the state of Arizona were successful in this past election with general obligation bonds.
In addition to the above mentioned financing options, there are a few other options to support capital projects. Those options are charitable giving (foundation) and grant support from federal government grants.
Mr. Bowmaster recommended the College and the Governing Board take into consideration, over the next 6-8 months, the use of a Bond Council and Financial Advisor. He explained that it is best to engage these services early in the planning process to ensure we have the best legal and financial advice. Both of these services are paid from the proceeds of any financing issue meaning there is no cost to the College at this point to use their services to develop the process. If and when the College would issue any financing related to any capital project both are reimbursed from the financing proceeds so it does not come out of the general budget of the College. The College
could use existing state contracts or go out for an RFP to select the Bond
Council and Financial Advisor.
Mr. Bowmaster explained to the Board the purpose of the Bond Council. He stated the bond council prepares all of the legal documents for financing. They would prepare the declaration and all necessary election paperwork should the Board decide to try for a General Obligation Bond. The Bond Council issues an opinion for compliance with state and federal laws for any financing, it advises the Board and the College on conducting a legal bond election and they also work with the financial advisor on all aspects of the master facilities plan process and any election for bond issue.
Mr. Bowmaster then explained the role of the financial advisor. The financial advisor prepares for any potential financing, prepares schedules for the election pamphlet and offering statements, prepares any materials for the bond issuant, and advises on all aspects of the master facilities plan process.
Mr. Bowmaster stressed to the Board the benefit to engage in the services of these advisors as early as possible, preferably in the spring.
One final suggestion Mr. Bowmaster made was in regards to a specific resolution called a reimbursement resolution which should be done after bond council is engaged. This resolution means any spending on the capital projects in advance of the issuance of the debt can be reimbursed from the proceeds of that debt. It is a resolution that the Board passes, which must have specific legal language. Once passed, it is not specific to any specific debt issuance; it stays in place for any debt issuance unless the Board later rescinds the resolution.
Mrs. Guy asked who pays the bond council if the bond is taken to the voters and fails. Mr. Bowmaster responded that the bond council is compensated only if the bond issue is successful.
Dr. Nicodemus stated the administration would like to bring forward to the Board a computer-generated model of MFP by the end of the academic year (May-June) to allow faculty to see the plans. The steering committee has made visits to many of the community colleges in the state with more trips planned for the future. Dr. Nicodemus added that Dr. Jensen heads the Sierra Vista campus sub committee, Mr. Hoyack heads the Douglas campus sub committee, and Ms. Ellis heads the Extended campus sub committee. The community input would begin summer/early fall 2005.
Mr. Flores asked Dr. Nicodemus where the multi-year educational plan fit into the master facilities plan. Dr. Nicodemus responded that the master facilities plan is being driven by the College’s educational priorities. She added the College has three guiding principles: more students in the baccalaureate pipeline, celebrate that we are a border Community College, and respond to the needs of workforce training. The lesson learned from Central Arizona College is to be flexible to the needs of the community in the future in terms of programs – it is very unlikely that the College can predict what specific vocational programs will be in place in ten or 20 years. Dr. Michelich agreed that building flexible space, with consideration for mission and students to be served, was important.
Mr. Flores wanted to go on record to the administration to consider implementing a multi year educational plan, which will go hand in hand with the master facilities plan. He added the College needs to build the facilities around this plan and have a direction where the College will put its focus. Mr. Flores added that he felt the assumptions do not sit well with the Douglas residents and he recommended we use the experts in house, hire a consultant, and he asked to leave the door open for the new representative, Dr. Mike Carter, to hire an independent consultant to come in and give an evaluation of the data, employment projections, population projections and economic projections. Mr. Flores also asked when the Board will have some hands on during this master facilities plan process and the educational plan, as well as the public. He asked for a time frame on these issues.