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SACSCOC Reaffirmation & QEP Update June 2020

Dr. Kristina Ramirez Wilson

We are the Class of 2021…

• Compliance Certification due March 2, 2020

• Off-Site Committee Review: May 25, 2020

• Quality Enhancement Plan (QEP) & Focused Report due September 8, 2020

We are the Class of 2021…..

• On-Site Committee Visit: October 26-29, 2020

• Response to Visit Report due (if necessary): April 2021

• SACSCOC Board reviews peer review reports and makes decision regarding reaffirmation in June 2021; status announced Dec. 2021

Compliance Certification

• Work on Compliance Certification began in June 2018; SACSCOC Steering Committee

• 74 SACSCOC Standards: Detailed narrative descriptions and evidence items

• Final Product: 9,574 individual items, 588 pagesof PDF narrative, and 6.5GB of data

Compliance Certification

Writing

Team

Leaders

Natalie Villarreal, Mary McQueen, Jerry Henry, Kristen Wilkerson, Davis Merrell,

Vangie DeLeon, Jennifer McWha, Velma Pena, Jan Spigner, Christine Gottemoller,

Carlos Garanzuay, Glenn Madden, Matthew Perry, Judi Phillips, Patricia Benavides-

Dominguez, Cody Gregg, Cheryl Sanders, Sushil Pallemoni, Shane Stewart, Janet

Kamps, Jessica Montalvo-Cummings, Robert Duffie, Gregory Palmer, Joseph Ruiz,

Cathy West, Larry Lee, Leonard Rivera, Lauren White, Jack Tweddle, Barbara

Kimball, Leticia Clark, Jennifer Sramek, Kristina Wilson, Sydney Saumby, and Lucy

James.

Editors Sydney Saumby, Lucy James, Kristina Wilson, and Cody Gregg (Final Editor).

Technical

Reviewers &

Assistants

Mary Guerra, Leticia Clark, Newman Wong, Angelica Gomez, Emily Stewart, Carlos

Garanzuay, and Carolyn Sorrels.

Technology

Support

August Alfonso, Jessica Montalvo-Cummings, Cristina Wiltshire, and Lucy James.

Quality Enhancement Plan (QEP)

Key component of Reaffirmation; results in a stand-alone document

Focusing on a student success issue facing the institution

Part of comprehensive planning

and evaluation process

(Strategic Plan!)

QEP DevelopmentSummer 2018 Topic Development Committee Convened; QEP Director

selected: Dr. Dale Anderson, Assistant Professor of

Speech

Fall 2018 Committee researched factors impacting DMC student

success; Surveys and focus groups conducted

Spring 2019 Topic finalized: Advising!

GPS: Goals + Planning = Success

Fall 2019 QEP development begins; Transition to new QEP

Director: Christine Gottemoller, Assistant Professor of

Political Science

QEP DevelopmentSpring &

Summer 2020

Finalizing QEP goals and strategies;

collaboration with Guided Pathways and SENDA

grant committees

September 2020 Submit QEP to SACSCOC

October 26-29,

2020

SACSCOC On-Site Visit


QEP Goals QEP Strategies

Clarify Career Goals • Update College website to structure programs

into 8 GPS MAPs (meta-majors)

• Promote student use of career exploration tools

Follow Consistent &

Effective Advising

Practices

• Certify faculty and staff advisors through an

online training course which incorporates

advising best practices

• Support faculty and staff through on-going

professional development activities

QEP Goals QEP Strategies

Improve Student

Engagement

• Require regular and on-going interaction

between students and advisors

• Provide support to students identified as at-risk

of not persisting

Utilize Innovative

Technology

• Implement Campus Management Pathways

Advising Module (degree audit and degree plan)

• Support faculty, staff, and students through

professional development and training

opportunities.


Alignment to Strategic Plan KPIs

Goal One: Completion• Number of degrees and certificates awarded

• Graduation rates

• Average time to degree

• Average semester credit hour (SCH) to degree

Goal Two: Recruitment & Persistence• Fall-to-fall persistence

On-Site Review Visit

• Scheduled on October 26-29, 2020

• Meetings with Evaluators will focus on:

o QEP

o Compliance with federal requirements

o Standards identified as requiring additional

information during Off-Site Review

Questions?

Thank you.

Del Mar College 2014 Capital Improvement Program

Update

June 9, 2019

John Strybos, PE, CPAVice President and Chief Physical Facilities Officer

Project Status as of April 30, 2020Project Status Current Budget ($)

Central Plant Upgrades Phase 1 and 2 Complete 2,959,511

Richardson Auditorium Flooring Complete 256,434

Venters Fire Alarm Complete 213,574

Master Plan South Complete 1,650,439

General Academic Music Building Complete 59,519,476

Workforce Development Center Complete 20,551,531

Emerging Technology Complete 11,780,070

Subtotal (61.77% complete of $156,941,729) 96,931,035

Project Status as of April 30, 2020Project Status Current Budget ($)

Pilot Plant Project Site work underway 467,500

Fine Arts Music (existing) Renovation Reviewing Space programming 7,199,691

Harvin Student Center Renovation Reviewing Space programming 7,253,900

Re-Roofing (Packages 1, 2 and 3) Preparing Solicitation 4,435,359

Heldenfels RenovationReviewing Space programming 4,570,749

Memorial Classroom Building RenovationReviewing Space programming 2,520,000

White Library Renovation Reviewing Space programming 9,369,108

Heritage Hall Demolition Scope of Work Definition 553,033

General Purpose Building Demolition Scope of Work Definition 359,100

West Campus Paving, Asphalt, Signage, Lighting, Fire Alarm, IT Site Scope of Work Definition 3,546,939

East Campus, Edge, Signage, Lighting, Fire Alarm, IT Site Scope of Work Definition 11,527,448

Contingency 8,207,867

Subtotal (38.23% remaining of $156,941,729) 60,010,694

CENTRAL PLANT UPGRADS

Final Project Cost $2,959,511

Phase 1 - East CampusStart April 27, 2016

Finish September 22, 2017

Phase 2 – West CampusStart September 21, 2016

Finish June 20, 2017

CENTRAL PLANT UPGRADES Complete

CENTRAL PLANT UPGRADSCENTRAL PLANT UPGRADES

West Campus

Daikin 600 ton chiller

CENTRAL PLANT UPGRADSCENTRAL PLANT UPGRADES

East Campus

• 3 1,000 ton Marley cooling towers.

• 2 Yaskawa VFDs for the chill water pumps.

• 4.6 million btu Bosch condensing boiler.

• 1,000 ton Daikin centrifugal chiller.

EMERGING TECHNOLOGY EXPANSION


Start Date May 25, 2017

Substantial Completion August 28, 2019

Project Size 27,041 Square feet

EMERGING TECHNOLOGY CENTER – West Campus

EMERGING TECHNOLOGY EXPANSIONEMERGING TECHNOLOGY CENTER – West Campus



Start Date March 17, 2017

Substantial Completion December 20, 2019


WORKFORCE DEVELOPMENT CENTER – West Campus

WORKFORCE DEVELOPMENT CENTERWORKFORCE DEVELOPMENT CENTER – West Campus


Final Project Budget $59,519,476

Start Date May 8, 2017

Substantial Completion December 31, 2019


GENERAL ACADEMIC and MUSIC BUILDING – East Campus

GENERAL ACADEMIC and MUSIC BUILDING – East Campus

Next Steps

1) Use Indefinite Delivery Indefinite Quantity (IDIQ) Request for

Qualifications (RFQ) Number 2019-20 “For Architectural and

Engineering Services to Support Various Del Mar College

Projects” to identify Project Architects and Engineers.

2) Upon Completion of the Construction Documents, Solicit

Competitive Sealed Proposals (CSP) for the Construction of

the Projects.

Next Steps (Continued)

1) Finalize Space Programming Reports for Renovation Projects.

2) Complete Definition of Scope of Work for other Projects.

3) Begin Design Work.

4) Advertise for Asbestos Abatement Services.

5) Advertise for Building Demolition.

2014 Bond Projects Preliminary ScheduleProject 20 2020 – 2021 2021 – 2022 2022 – 2023

Green = Design, Blue = Construction Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Pilot Plant Project

Fine Arts Music (existing) Renovation

Harvin Student Center Renovation

Re-Roofing (Packages 1, 2 and 3)

Heldenfels Renovation

Memorial Classroom Building Renovation

White Library Renovation

Heritage Hall Demolition

General Purpose Building Demolition

West Campus Paving, Asphalt, Signage, Lighting, Fire Alarm, IT Site

East Campus, Edge, Signage, Lighting, Fire Alarm, IT Site

Discussion

Del Mar College 2021 Preliminary Budget Update

June 9, 2020Raul Garcia, Vice President and Chief Financial Officer

Dr. Cathy West, Director of Accounting and Budget Officer

John Johnson, Comptroller

Jackie Landrum-Budget Analyst

2021 Budget Timeline & ProcessMonth Activity Date

Sep 2019 • Tuition and fee assessment (CFO) Sep 16 – Oct 14

Oct 2019 • Budget plan calendar development 3

• Tuition and fee update with Student Government

(CFO)

17

Dec 2019 • Distribute technology & facility maintenance

worksheets

2

• Tuition and fee Update (Board of Regents) 12

Jan 2020 • Preliminary operating budget assumptions 16-17

• Budget kick-off meeting and worksheets distribution 21

• Budget worksheet training 22 and 24

Feb 2020 • Tuition and fee change approval (Board or Regents) 4

• Preliminary Salary, Open, and New Positions 7

• Technology & facility maintenance worksheets due to

fiscal office

14

• Worksheet submission i.e. Chairs to Deans/Directors 21

Planning

(Phase I)

Information Gathering (Phase II)

Review and Recommen

dations (Phase III)

Budget Approval

(Phase IV)

Property Tax Approval (Phase V)

1

2021 Budget Timeline & ProcessMonth Activity Date

Mar 2020 • Worksheets submission for all categories (All budget

stakeholders i.e. Deans to V.P.’s

6

Apr 2020 • Preliminary property values (Nueces County Appraisal

District)

1

• Final Salary, Open, and New Positions (H.R.) 8

• Preliminary budget approval and final submission (General

Counsel, Executive VP, V.P. Administration and H.R., V.P. of

Workforce Development and Strategic Initiatives, Executive

Director of Development, V. P. of Facilities Operations and

CIO, Executive Director of Strategic Communication and

Government Relations, V.P. of Student Affairs, and CFO)

24

• Budget worksheet crosscheck with Strategic Unit

Assessment Plan for fiscal year 2021. CFO and Dean of

Institutional Effectiveness and Assessment

Apr 27-May 8

Planning

(Phase I)


Review and Recommen

dations (Phase III)

Budget Approval (Phase IV)


2

2021 Budget Timeline & ProcessPlanning

(Phase I)


Review and Recommen

dations (Phase III)

Budget Approval (Phase IV)


Month Activity Date

May 2020 • Preliminary budget update (Board of Regents) 12

Jun 2020 • Budget Update (Board of Regents) 9

Jul 2020 • Certified appraisals (Appraisal District) 25

• Regular Board Meeting 14

• Budget Workshop 14

Aug 2020 • Publish tax rate notice deadline (DMC) 2

• Order for public hearings on budget and tax rates (Board

of Regents)

3

• Publish notice of public hearing for budget and tax rate

(DMC)

9

• Regular Board Meeting 11

• 1st Public hearing on budget and tax rate (Board of

Regents)

17

• 2nd Public hearing on tax rate (Board of Regents) 20

• Budget and tax rate approval (Board of Regents) 25

• Deadline for budget approval in accordance with the Texas

Education Code

31

3

2021 Preliminary Expense Budget

DescriptionBudget

FY2019-2020Increase/(Decrease)

Preliminary

Budget

FY2020-2021

Faculty Salaries $ 34,270,672 $0 $34,270,672

Exempt Salaries 13,993,812 0 13,993,812

Non-Exempt Salaries 11,444,140 0 11,444,140

Benefits 19,613,492 0 19,613,492

Non-Salary Expenses 25,936,375 0 25,936,375

Contingency 1,618,150 0 1,618,150

South Campus 1,000,000 0 1,000,000

Total Projected Expenses $107,876,641 $0 $107,876,641

4

2021 Proposed Salary Increase

DescriptionSalary

Change

Benefit

Change

FY 2021

Total

Change

Full-Time Faculty Experience Pay @829 $240,000 $52,800 292,800

Approved Rank Promotions 115,000 25,300 140,300

Summer Pay Impact 59,167 13,017 72,184

Total Faculty $414,167 $91,117 $505,284

Exempt Employees 1% Raise 130,900 28,798 159,698

Non-Exempt Employees 1% Raise 70,300 15,466 85,766

Total Exempt and Non-Exempt $201,200 44,264 $245,464

Grand Total $615,367 $135,381 $750,748

5

2021 Other Preliminary Increases

Other Maintenance & Operations Expenses – Approximately $1.2M Insurance

Electricity

Election

6

2021 Preliminary Revenue Challenges & Assumptions

Revenue

State Appropriations

Property Taxes

Tuition & Fees

Tuition & Fees Assumptions • $2 in-district tuition rate increase New rate $69

• Enrollment Growth Projections-Flat

Tax Assumptions• 1% decrease in collection rate

• 4.25% increase in net taxable value

• Maintenance and Operations Tax Rate will

decrease by 0.6 cents

• Debt Service Rate increases by 1.4 cents

attributable to new tax bond issue

• Overall tax increase of 0.8 cents

State Appropriations• Flat

7

2021 Preliminary Revenue Budget

SourceBudget

FY2019-2020Increase/(Decrease)

Budget

FY2020-2021

State Appropriations $16,479,469 $0 $16,479,469

Insurance Contribution 4,263,497 0 4,263,497

Retirement Contribution 1,564,963 0 1,564,963

Tuition & Fees 25,962,825 0 25,962,825

Property Taxes 58,222,474 0 58,222,474

Miscellaneous 1,383,413 0 1,383,413

Total Projected Revenues $107,876,641 $0 $107,876,641

8

Preliminary Revenue Reduction Contingency Plan

9

• Possible decline in enrollment

• Possible decline in tax collection rate

Revenue

• Engage in prudent fiscal management efforts

• Decrease Salaries & Benefits by not filling all vacant positions

• Decrease Supplies & Travel

• Resource Reallocation

• Risk Reserve Fund

Expense

Attachment 1

10

Thank You!

15

MINUTES OF THE REGULAR MEETING OF THE BOARD OF REGENTS OF THE DEL MAR COLLEGE DISTRICT

May 19, 2020

The Regular Meeting of the Board of Regents of the Del Mar College District was convened, in person and/or by teleconference, at the Center for Economic Development, 3209 S. Staples St., Corpus Christi, Texas at 1:01 p.m. on Tuesday, May 19, 2020, with the following present: From the Board: Ms. Carol Scott, Dr. Nicholas Adame, Ms. Libby Averyt (telephone), Mr. Ed Bennett, Ms. Elva Estrada, Ms. Susan Hutchinson (telephone), Mr. Gabe Rivas, Mr. Hector Salinas (telephone), and Dr. Mary Sherwood (telephone). From the College: Dr. Mark Escamilla, President and CEO; Mr. Raul Garcia, Vice President and CFO; Ms. Lenora Keas, Executive Vice President and Chief Operating Officer; Ms. Tammy McDonald, Vice President of Administration and Human Resources; Mr. August Alfonso, Vice President and Chief Information Officer; Dr. Rito Silva, Vice President of Student Affairs; Mr. Augustin Rivera, Jr., General Counsel; Mr. John Strybos, Vice President and Chief Facilities Officer; Ms. Lorette Williams, Executive Director of Strategic Communication and Government Relations; Dr. Natalie Villarreal, Director Of External & Board Relations; John Johnson, Comptroller; Ms. Mary McQueen, Executive Director of Development; Delia Perez, Executive Administrative Assistant to the President & Board Liaison, and other staff and faculty (with the exception of Dr. Escamilla, all by telephone). Due to health and safety concerns related to the COVID-19 (Coronavirus) pandemic crisis, this meeting was conducted in accordance with guidance from the Texas Governor’s Office and the Texas Attorney General’s Office, and the provisions of Sections 551.122 and 551.127 of the Texas Government Code and other open meeting requirements, that have not been suspended by order of the Governor. CALL TO ORDER/QUORUM CALL/ROLL CALL Ms. Scott called the meeting to order with a quorum present. Provisions were made for the public to participate in this meeting and to provide public comments. GENERAL PUBLIC COMMENTS – The public was given the opportunity to provide public comments (both general and specific to any agenda item) by calling a toll-free phone line prior to the Board meeting and registering with their name and subject of public comment. There were no public comments at this meeting. COLLEGE PRESIDENT’S REPORT………………………………………………Dr. Mark Escamilla (Goal 4: Learning Environment)

_____________________________________________________________________________________ Regular Meeting Page 2 May 19, 2020

• President Escamilla provided an update on the College’s response to the current COVID-19 pandemic and stated that the College is moving forward as safely as possible and continues to operate largely on an online basis. A Return to Campus team and an Advisory Committee have been established to develop a plan for a phased return to campus for certain students, faculty and staff over the next several weeks. Tammy McDonald and Lenora Keas will chair the team with college-wide representation. The primary goal for Phase One of the phased return to campus is for the completion of the Spring semester for approximately 550 enrolled students, credit and continuing education students. Also, a plan was implemented to allow for faculty and staff to enter the College’s facilities to prepare for the eventual return of students. Access to campus remains restricted and closed to public, but certain employees are being allowed limited access on designated days in coordination with the security office.

There are four parts to the Phase One Return to Campus plan: 1) Complete the COVID-19

Assessment, Acknowledgment and Consent form through Human Resources; 2) Campuses continue to be restricted to general public access; 3) Health and safety guidelines are implemented in accordance with the CDC and the Governor’s office by way of the Texas Higher Education Coordinating Board.; and 4) Personal Protection Equipment continues to be implemented. The Return to Campus team has developed stringent health and safety protocols to support this transition. Specific courses that require face-to-face instruction for completion is the College’s highest priority.

Dr. Escamilla responded to questions from the Board of Regents. Dr. Escamilla described the Ad Hoc groups that have been formed for the necessity of dealing with

the pandemic crisis, including the Crisis Management Team and the Instructional Continuity Team Other teams and committees providing assistance during this time include the Executive Team, eLearning Technology Committee, CARES Act Committee, Financial Stabilization Committee.

The Virtual Graduation and Commencement Committee was created to prepare a first ever virtual

graduation for students who have overcome extraordinary obstacles to complete their education. Also, the students who want to walk across a stage for graduation will be afforded the opportunity as circumstances permit. The virtual graduation will be held on May 29, 2020 at 7 p.m. via numerous online formats.

On May 15, 2020, President Escamilla held a virtual College-wide meeting to present the current

state of the College. The College-wide meeting was the first virtual meeting ever and there were 821 live views participating with a total of 1,260 views as of yesterday.

Dr. Escamilla discussed evolving plans for May, Summer and Fall classes, offering more flexibility in

scheduling and instruction to meet evolving healthy and safety requirements. He also discussed the financial challenges in the foreseeable future and explained a financial

stabilization plan for the next twenty-four months and initial steps to prepare for the changes to come. These include specific cost-reducing steps and establishment of a Risk Reserve Fund.

Dr. Escamilla reported the funding received by the College under the Federal CARES Act and as a

Title V Hispanic Serving Institution (HSI). While the Foundation was not able to hold Bernie’s Bash


this year a creative conversion to an online format raised over $220,000 to be distributed to students by way of the Foundation.

He stated that as the College moves forward with construction projects, the 2014 Capital

Improvement Plan on the West Campus kicked off two pilot plants. The 2016 Capital Improvement Plan also known as the Southside Campus is also moving ahead in earnest.

Dr. Escamilla provided a brief update on the Strategic Plan, the Enterprise Resource Planning

System, College’s 10-year accreditation plan, and a legislative update.

Dr. Escamilla responded to questions from the Board of Regents.

• Chief Executive Officer Reporting Requirements under Tex. Educ. Code § 51.253(c) (Goal 5: Workforce Development, Community Partnerships, and Advocacy)

President Escamilla introduced Tammy McDonald, Title IX Officer who discussed reporting requirements under new Texas Education Code § 51.253(c) enacted by the Legislature during the last session. Ms. McDonald provided a summary data report for the 2019-2020 academic year as of April 15, 2020. Under Section 51.252, there were twenty reports received, sixteen of the twenty were confidential, and one investigation conducted. There were no reports received that include allegations of an employee’s failure to report or who submitted a false report. There were no questions by the Board of Regents.

STAFF REPORTS:

• Enrollment Update……………….…………………………Ms. Lenora Keas and Dr. Rito Silva (Goal 2: Recruitment and Persistence) Dr. Escamilla introduced Ms. Keas who stated that Patricia Benavides-Dominguez, Dean of Outreach & Enrollment Services, Dr. Rito Silva, Vice President for Student Affairs, and Dr. Leonard Rivera, Dean of Continuing Education and Off Campus Programs will be presenting information pertaining to the enrollment update. Ms. Keas provided an overview of enrollment update and then proceeded discussing the Biennium Funding by Contact Hours for the Base Year.

-Texas Legislature funds community colleges on a base year during periods beginning the summer semester of the even numbered years prior to a legislative session. (2014-2015; 2016-2017; 2018-2019; 20202-2021) -The base year begins in the Summer I semester (Spring Flex) and continues through the end of the following spring semester.


-Contact hours are based on the total number of hours of instruction for each student and for each course for Credit and Continuing Education courses. It is what they calculate to be our state funding.

Ms. Keas reviewed the Budget Revenue for 2019-2020. Total maintenance and operating budget is $107,866,641. The funding percentages are as follows: 1) State Appropriations, 15.3%; State Benefit Contribution, 5.4%; Net Tuition & Fees, 24.1%, Miscellaneous, 1.3% and Property Taxes, 54.0%. Ms. Keas provided a further breakdown of base year dollars as far as the state funding as it related to contact hour reimbursement for the last four base years or the biennium. Ms. Keas further discussed base year funded contact hours between Del Mar College, large colleges group and community colleges statewide which is number comprised by the State of Texas. Although Del Mar College contact hours were down, the Continuing Education hours were up by 33.7%. Dr. Escamilla and Ms. Keas responded to questions from the Board of Regents. Dr. Silva continued discussion regarding Credit Contract Hours. We had an increase in contact hours in the Spring 2019 to Spring 2020. In Spring 2019 there were 1,957,000 contact hours and in Spring 2020, the preliminary contact hours are at 1,959,000. The comparison from 2015 to 2020 is a 6 ½% increase in contact hours over these past five years. For the fall credit headcount, Del Mar College increased from 12,252 for Fall 2019 compared to 12,159 for the fall of 2018. Other than the Fall of 2017 after Hurricane Harvey, there have been increases every semester for the last five years. For the spring credit headcount, Del Mar College shows a 1.7% increase from spring 2019 in the amount of 11,884 to 12,082 for the spring 2020 preliminary numbers. As of May 18, 2020, Del Mar College’s contact hours were 8% over. Dr. Escamilla stated that as of Friday, May 15, 2020, the headcount for enrollment was down 3% but the contact hours were up 8% which translates students taking more hours. On Monday, May 18th enrollment went up 4% for Summer I classes.

Dean of Student Outreach and Enrollment Services, Ms. Patricia Benavides-Dominguez discussed initiatives to provide increased student access. Dean Dominguez discussed the Viking Islander Program which began in 2018 and Dual Credit Program. Dean Dominguez stated that the Viking Islander Program initially started with a goal of 50 students which was exceeded with 127 enrolled students. For the spring 2020 semester, the College had 112 enrolled students in the Viking Islander Program. Dean Dominguez discussed the Dual Credit headcount numbers. She stated that for the fall Dual Credit and College credit courses headcount, which began in 2015, initial enrollment was 1,823 and for the fall of 2019, 2,995 students were enrolled. The five-year increase is 42.3% with a projected 10-year increase of 117.1%. In 2016, the spring Dual Credit headcount enrollment was 1,139 and in 2020, the enrollment is 2,915. The five-year increase is 50.3% and a 10-year projected increase of 143.5%. Dean Dominguez responded to questions from the Board of Regents.


Dr. Leonard Rivera, Dean of Continuing Education and Off Campus Programs continued with the presentation and stated that they continue to do their best to provide continuing education services to the entire community with the focus on their business and industrial partners as well as high school campuses around their area. The fall 2018 Continuing Education Dual Credit headcount was 583 non-duplicated students and in fall 2019, there were 1,228 students which shows an increase of 110.63%. For spring 2018 Continuing Education Dual Credit headcount was 1,726 students and in spring of 2020, there were 1,192 students. The 44% decrease in enrollment is attributed to the Covid-19 pandemic, the intermittent schedules of Continuing Education classes, and the cancellation of some Continuing Education classes. In keeping with the College’s Strategic Plan, the College continuea to work closely with high school partners as follows: • Currently Serve 18 ISDs (23 High school campuses). • Offer 5 Healthcare Programs to ISDs: o CNA, Phlebotomy Tech, EKG, Patient Care Tech and Medical Assistant • All Healthcare Programs lead to National or State Certification.

• Offer Safety Training and Construction Trades Training that leads to OSHA 10 or 30 Certification and prepares for a career in the construction industry. • All CE programs are on the Texas Workforce Commission’s Targeted Occupations List for the Coastal Bend.

Dr. Rivera stated that the Continuing Education funded contact hours decreased 13.67% from 185,552 contact hours in the second quarter of 2019 to 163,234 contact hours in the second quarter of 2020. The decrease is attributed to COVID-19 and classes that could not be started or completed. Dr. Rivera further stated that Continuing Education is on tap to grow to the next level and they are creating innovative programming working closely with faculty and staff at Del Mar College. Dr. Escamilla, Ms. Keas, and Dr. Rivera responded to questions from the Board of Regents.

• Preliminary Budget Report Fiscal Year 2020-2021…………………………….Mr. Raul Garcia (Goal 6: Financial Effectiveness and Affordability) Dr. Escamilla provided introductory remarks. Mr. Garcia stated that the College was on track with the original timeline but was derailed because of the national emergency declared on March 13, 2020. Del Mar College moved forward with planning, design, executing and adjusting to its new environment to ensure the students gained necessary knowledge, skills and goals of graduation, transfer or personal achievement. Mr. Garcia stated that the acronym RAN described the College’s efforts to transition: R = responsiveness to student needs, A = agility to adjust to current environment, and N = nimble to quickly institute change.

Mr. Garcia and Dr. Escamilla responded to questions from the Board of Regents.


Mr. Garcia stated that the College is instituting a financial stabilization plan with a preliminary expense flat budget with $107.9 million for fiscal year 2020-2021. The budget includes freezing travel, food, office supplies, non-critical equipment and includes limiting hiring of employees to only critical positions which include term and tenured track instruction. They will also consolidate and broaden responsibilities to current positions. They will also negotiate a new energy contract, leverage grant funding for health and safety needs that align with strategic initiatives, and establish a risk management reserve.

Mr. Garcia stated that change to compensation hinges on results of the planned cost reductions, projected revenues for 2020-2021, and the funding level of the risk reserves. The preliminary budget includes a change in compensation valued at $750,748.00 which is a 1% change which includes a faculty compensation change valued at $505,284.00 and a change in exempt and non-exempt valued at $245,464.00.

Mr. Garcia stated that there is a change to other preliminary increases valued at $1.2 million relating to non-insurance, electricity, and election. The plan is to fund these costs with the planned cost reductions previously mentioned. The increase in insurance is regarding the recent Board approval.

Mr. Garcia discussed the 2021 revenue challenges and assumptions and stated that the external data points for the budget is very difficult to solidify because it’s not definitive. As an example, there are discussions about a state funding reduction for fiscal year 2020-2021 from 5% to 15% which hinges on the state’s plan for managing its cash load, leveraging the state’s economic stabilization fund, and tax revenues. The State Comptroller will provide more information regarding this matter around the July timeframe.

The College has developed the following revenue assumptions:

-Tuition and Fees Assumptions: $2 in-district tuition rate increase that was approved by the Board in February 2020 -Tax Assumptions: Based on discussions with the Nueces County Appraisal District and historical trends, tax valuation growth is estimated at 4.25% and new construction is estimated at $300 million, and decrease our collection tax rate by 1% -State Appropriations: range from 5 to 15%, the College will budget for a 10% decrease

Mr. Garcia and Mr. John Johnson responded to questions from the Board of Regents. Regarding the 2021 preliminary revenue budget, they are planning for projected revenues of $107.8 million. There was a decrease of $1.6 million which will be offset by tuition, fees and property taxes. Dr. Escamilla, Mr. Garcia, Ms. McDonald, and Mr. Johnson responded to questions from the Board of Regents.


PENDING BUSINESS:

• Status Report on Requested Information……………………………………………Ms. Carol Scott (Goal 5: Workforce Development, Community Partnerships, and Advocacy)

Chair Scott reviewed the list of pending business and upcoming updates that will be discussed in June and July’s meetings.

CONSENT AGENDA

CONSENT MOTIONS: (At this point the Board will vote on all motions not removed for individual consideration.) ITEMS FOR DISCUSSION AND POSSIBLE ACTION:

1. Approval of Minutes:

Regular Board Meeting March 17, 2020 Regular Board Meeting, April 14, 2020 (Goal 5: Workforce Development, Community Partnerships, and Advocacy)

2. Acceptance of Investments for January, February, March and April 2020

(Goal 6: Financial Effectiveness and Affordability) 3. Acceptance of Financials for January, February and March 2020

(Goal 6: Financial Effectiveness and Affordability)

Regent Rivas made a motion to approve the Consent Agenda items. Regent Estrada seconded the motion. There was no further discussion from the Board. A voice vote was taken, and the motion passed unanimously, 9-0, with Regents Adame, Averyt, Bennett, Estrada, Hutchinson, Rivas, Salinas, Scott, and Sherwood in favor.

REGULAR AGENDA

4. Discussion and possible action related to the College’s Quarterly Investment Report for the period

ending February 29, 2020…………………………….………………………………………………Mr. Raul Garcia (Goal 6: Financial Effectiveness and Affordability) Mr. Garcia stated that the federal government recently introduced a fiscal and monetary policy to provide emergency support in response to the Covid-19 crisis and introduced Linda Patterson from Patterson and Associates, the College’s financial advisors, to discuss activities that are impacting the US economy and the College’s investment yields.


Ms. Patterson stated that the crisis has been hard on the markets as the social and economic global shutdown. Economic weakness is widespread as expected, as global economic shutdowns have left nearly every domestic and international industry reeling from policies forcing businesses to close and workers to shelter in their homes. The slew of disappointing economic data has driven the US GDP down 4.8% which foretells a potential negative GDP in the first quarter of 2020. Unemployment rates hit over 30 million in the last six weeks across the country. The Federal Reserve left the rate policy unchanged with the federal funds target in a range from 0.00% to 0.25%. The College’s fiscal quarter earnings were $435,730 in February 2020, in February 2019 the fiscal quarter earnings were $522,548. Series 2018 (A & B) Tax Bond Funds fiscal quarter earnings were $547,339.00.

Ms. Patterson and Mr. Garcia responded to questions by the Board of Regents.

Regent Bennett made a motion to accept the College’s Quarterly Investment Report. Regent Adame seconded the motion. There was no further discussion from the Board. A voice vote was taken, and the motion passed unanimously, 9-with Regents Adame, Averyt, Bennett, Estrada, Hutchinson, Rivas, Salinas, Scott, and Sherwood in favor.

5. Discussion and possible action related to the College’s Quarterly Financial Report for the period

ending February 29, 2020…………………………….………………………………………………Mr. Raul Garcia (Goal 6: Financial Effectiveness and Affordability) Mr. Garcia provided a brief review of the College’s Quarterly Financial Report for period ending February 29, 2020. Mr. Garcia discussed the following revenue streams: -College has collected 94% of the $58.2 million in tax revenue -College has collected 64% of the $25.9 million in tuition and fees -College has collected 43% of the $16.5 million in base appropriations The College’s Operating Expenses are $37.1 million for salary and benefits and $10.7 million for non-salary expenses. The College will take measures this year scaling back on certain expenses to fund the Risk Reserve Fund. The College’s unrestricted cash and investment position is valued at $76.5 million and is well positioned to fund the accounts payable, college statutory required annual pension & healthcare obligations, and the revenue bond annual debt service payment.

Regent Bennett made a motion to adopt the College’s Quarterly Financial Report. Regent Rivas seconded the motion. There was no further discussion from the Board. A voice vote was taken, and the motion passed unanimously, 9-0, with Regents Adame, Averyt, Bennett, Estrada, Hutchinson, Rivas, Salinas, Scott, and Sherwood in favor.


6. Discussion and possible action related to annual ethics training of the Board of Regents

………………………………..………………….…………………………Mr. Augustin Rivera, Jr. (Goal 5: Workforce Development, Community Partnerships, and Advocacy) Mr. Rivera explained the purpose of the Board’s annual ethics review and asked the Board to review the Code of Ethics and Board Bylaws included in the Board packet. He also asked the Board to sign the Code of Ethics form reaffirming their commitment, as Board members, to ethical conduct, and to return the signed form to his office for safe keeping. Mr. Rivera reported that in January, he had the opportunity to moderate an ethics panel at the Texas Association of Community College Attorneys (TACCA) annual conference with two friends of Del Mar College, Mr. Roberto Zarate, Trustee at Alamo Community College and past President of ACCT, along with Dr. Molly Beth Malcolm, Executive Vice President of Campus Operations and Public Affairs with Austin Community College, who served as panelists. The resource information put together for the annual conference was included in the meeting packet for the Board’s review.

Mr. Rivera addressed two, specific issues submitted by Board members regarding specific the legal rules that apply to gifts to a public official and the boundaries and potential consequences of Regents requesting additional information from the College. Mr. Rivera said that, following the meeting, he would forward to the Board a TASB guidance paper on the rules pertaining to gifts to public officials. Mr. Rivera also directed the Board to the Dallas Community College District Meeting Agenda included in the TACCA materials he provided, for a good discussion of the micromanagement concerns that potentially arise from requests for information from trustees.

Mr. Rivera responded to questions from the Board of Regents.

Note: Regent Estrada left the Board meeting at 4:00 p.m.

At 4:10 p.m, the Chair announced the Board was going into Closed Session pursuant to: 7. CLOSED SESSION pursuant to:

A. TEX. GOV’T CODE § 551.071: (Consultation with legal counsel), regarding pending or

contemplated litigation, or a settlement offer, with possible discussion and action in open session; and, the seeking of legal advice from counsel, on pending legal or contemplated matters or claims, with possible discussion and action in open session; and

B. TEX. GOV’T CODE § 551.074(a)(1): (Personnel Matters), regarding the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee; including 1) Annual Evaluation of the College President, and 2) Annual Board Self-Evaluation. (Goal 5: Workforce Development, Community Partnerships, and Advocacy)

The Board reconvened in Open Session at 4:49 p.m. with no action taken.


CALENDAR: Discussion and possible action related to calendaring dates ADJOURNMENT: The meeting was adjourned at 4:50 p.m. MINUTES REVIEWED BY GC: /s/ARjr

Depository Proposal Analysis

June 2020

RFP Process

04/01/20 Release of RFP

04/16/20 Response to any questions

05/01/20 Proposal submission

06/09/20 Board award of contract

09/01/20 Contract commencement

Two proposals received Frost Bank and Wells Fargo (incumbent)

Proposal Analysis Process

Service Analysis Compare of service capabilities and level of service

Cost of Service Analysis Comparison of direct and indirect costs Inclusive of transition incentives

Earnings Potential Analysis Comparison of earnings potential

Net impact Netting costs and earnings potential

Del Mar’s Objectives

40 % service costs and earnings potential

45 % ability to provide services and reports

10 % experience and references

5 % creditworthiness and stability of institution

Service Analysis

The service scores were very close Frost Bank 475

Wells Fargo 494

Both can provide excellent services

Wells Fargo outscored Frost slightly on: Automation: online services

Collection Services Positive Pay and Reconciliation

Wires and Transfer

Cost Analysis

Gross Monthly Fees Frost Bank $ 2,441 Wells Fargo $ 2,311

Incentives Offered Frost Bank: quoting fees at 40% of standard fee structure

$3,500 credit for supplies Waiving the first three months of service fees

Offering free deposit bags and deposit slips throughout the contract

Wells Fargo: $5,000 credit for supplies Offers a firm ECR of 0.25% for the first thee months

Adjusted for Incentives: Monthly fee over four years Frost Bank $ 2,093 per month Wells Fargo $ 1,837 per month

Rates – Compensating Balances

IF a compensating balance basis was used Not currently used and not recommended

Earnings Credit Rate The rate at which compensating balances earn

Frost Bank 0.45 % Wells Fargo 0.25 %

Balances required Based on fees and ECR rate

Frost Bank $ 5.4 million Wells Fargo $ 8.5 million

Rates If a Fee Basis is Used

Fee Basis of payment is recommended

Interest bearing account rates

Frost Bank 0.06 %

Wells Fargo 0.17 %

Sweep account rates

Frost Bank 0.20 %

Wells Fargo 0.20 %

Compilation of Fees and Rates

Both charge regulatory fee on balances kept in the bank Sweeping funds eliminates this monthly fee Sweeping allows for use of funds in sweep and pools

Low Rates and Cloudy Market Conditions obscure rate projections All banks will keep rates low through 2020 at least Market conditions should improve before bank rates

increase because of Fed’s commitment to liquidity Assuming increases in the money funds before banks can

move

Recommendation

On the basis of:

Services

Fees

No transition cost to Del Mar

Recommendation is to award to Wells Fargo