Minutes of the Regular Meeting of the Board

MEETING OF THE BOARD OF TRUSTEES OF THE SHASTA-TEHAMA-TRINITY JOINT COMMUNITY COLLEGE DISTRICT

WEDNESDAY, SEPTEMBER 13, 2017

MINUTES The Board of Trustees of the Shasta-Tehama-Trinity Joint Community College District met in regular session on Wednesday, September 13, 2017 in the Board Room of the Shasta College Administration Building located at 11555 Old Oregon Trail, Redding, California. 1. CALL TO ORDER

The meeting was called to order by Ms. Rhonda Nehr, Board President, at 7:00 p.m. 2. ROLL CALL Roll call indicated the following:

Trustees Present Trustees Absent Mr. Pat Carr Dr. Rob Lydon Ms. Rhonda Nehr Mr. Kendall Pierson Mrs. Rayola Pratt Mr. Robert Steinacher Mr. Scott Swendiman Mr. Evan Weston, Student Trustee

3. FLAG SALUTE Mr. Steinacher led the flag salute. 4. INTRODUCTION OF SPECIAL GUESTS Superintendent/President Dr. Joe Wyse said that I would like to welcome to Susan Wyche,

our new Dean of BAITS, I believe that this is her first meeting. 5. CALL FOR REQUESTS FROM THE AUDIENCE TO SPEAK TO ANY ITEM ON THE AGENDA Ms. Nehr asked if there were speaker cards indicating requests from the audience to speak

to any items on the agenda. There were none. Ms. Nehr said that before we begin, I would like to remind my fellow Board members to stay with protocol – when we have reports and agenda items, before we start asking ques-tions or have discussion, we need to have a motion put on the table.

6. REPORTS 6.1 FACULTY ASSOCIATION REPORT Dr. John Whitmer, Faculty Association President, greeted the Board and provided the fol-

lowing report: Last Labor Day, on September 4th, the Faculty Association was supporting the Five Coun-ties Central Labor Council at their Labor Day parade. The Student Club was out there help-ing out with the children, Phi Theta Kappa was there selling snow cones, we had a chance to speak to the Sheriff and several politicians, Dahle’s office was there – it was a good time. It was a good experience and the beginning of a good relationship. We look forward to

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MEETING OF THE BOARD OF TRUSTEES - 2 - SEPTEMBER 13, 2017

working with them on more activities to come. We have had lots of meetings with some pol-iticians and their representatives and interviewing candidates for the Board of Trustees and we are very excited about that effort. The faculty continue to work very hard and there are a lot of tired faculty out there even in the fifth week of classes. At the last meeting, two of the programs that were heralded, nurs-ing and theatre – and thinking of other programs that we are known for on campus like ECE, food services, sports – these are some of the hardest working faculty and they are wearing out. I encourage you to look into this. We are going to be talking about this at the Faculty Association meeting on Friday with some other important things that are coming up. Actual-ly I should mention, because the faculty asked me to, one of the things that we will be talk-ing about is people who are working hard but who are not being paid equally. For example, the faculty get only a $5,000 for term life insurance and administrators get a $100,000 for life insurance on campus, that has caused quite a buzz among faculty. That is the latest and greatest that we will be talking about on Friday. Thank you.

6.2 ACADEMIC SENATE REPORT

Ms. Cathy Anderson, Academic Senate President, greeted the Board and provided the fol-lowing report: Thank you for the Brown Act training, it was very helpful. We are working on revising the hiring procedure for part time faculty – we want to make it more consistent. We have some new programs like dual enrollment which are adding some challenges. We are working on it so you will see it soon. When we talk about Academic Senate as having purview of the 10+1, hiring procedure is included in this purview.

6.3 CLASSIFIED EMPLOYEES’ ASSOCIATION REPORT

Mr. Chris Petersen, President of CSEA Chapter 381, greeted the Board and provided the following report: We are in non-contract negotiations and they are going well. On Friday, we are going to be looking at some position descriptions. A big thanks to everyone in Student Services, the staff have been working so hard to make everything work at the beginning of the se-mester – it is a great team.

6.4 STUDENT SENATE REPORT

Mr. Evan Weston, Student Trustee, greeted the Board and provided the following report: First and foremost I would like to express to the board my deepest thanks for sending me to the Student Trustee training in Los Angeles. During my time there, I was introduced to plenty of new minds that were taking on the responsibilities of student leaders, as well as learning my role as Student Trustee and ASB President. Student Senate has been continuing to work hard providing services to our student body such as; printing off new ID cards, working on obtaining a quote for the Stormy Seabrings Memorial , and celebrating our Constitution by giving out cake in the cafeteria tomorrow from 1pm-3pm. Student Senate will be preparing for the upcoming Fall semester events as follows: 1. Constitution Day : September 14th Tomorrow! 2. Costume Club Kick-Off: October 31st 3. Great American Smoke out: November 16th

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4. BloodSource Blood Drive: November 29th through the 30th 5. Giving Tree Gift Pick Up: December 11th through the 15th I apologize in advance; I must leave the board meeting after my report due to an outside incidence. Thank you and have a great evening.

6.5 BOARD MEMBER REPORTS

Ms. Nehr asked if there were any Board Member reports. There were no reports.

6.6 SUPERINTENDENT/PRESIDENT’S REPORT Dr. Wyse said, so there is something fun for everyone on the table in front of them. This is

something that your grandkids know about – this is a fidget spinner. Susan Meacham has been passing them out to people on campus and they have brought lots of smiles, so she asked to pass one out to each member of the Board. Later on, you will hear about the successful bond sale that we just completed. I did want to mention the article in the California Sheriff magazine – there is a four page ar-ticle on the STEP-UP program. This is some great publicity and we are hoping to get it replicated in the local media. Next Friday is the second session of the Coordinated Leadership process. Reut Schwartz-Hebron is the consultant that we are bringing in to facilitate the workshop. We have done approximately 60 confidential interviews in preparation for this workshop. We are going to discuss the big themes and the things that we would like to change.

6.7 INSTRUCTION REPORT

Dr. Frank Nigro, Assistant Superintendent/Vice President of Instruction, greeted the Board and provided the following report: With the recent fires, we did have some interruptions at the Weaverville campus. We had to close the campus for a few days last week and the week before. I would like to thank the faculty and staff for really doing a lot to try to accommodate the students who missed some courses to get caught up. Also, I would like to thank Physical Plant for their support to ensure that all was taken care of in regards to safety. There were also some changes to athletic events – the first football game was cancelled. If we end up going to play-offs, this may cause some problems. There is a game on the 16th, so this Saturday, I believe Kevin O’Rorke’s team is putting together a tail gate party, so I encourage everyone to come out. During the solar eclipse, it was good to see how some of the faculty used this opportunity to work it into their classes. David Carico ordered a bunch (200 of them) of solar eclipse sun glasses and set up high powered telescopes to give all of his classes a chance to ex-perience the eclipse. It was really a magical event. The Accreditation site visit is coming up on October 2 - 5, we are busy getting ready for this. On September 26, we are going to Sacramento for an IEPI Guided Pathways Workshop. There will be 10 of us attending. This workshop is a pre-requisite for applying for some of the $150 million that has been set aside by the governor for this work. This will be a good way to get educated on this movement, which is a national movement.

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Later on tonight, we will have Dean Andy Fields and Dean Will Breitbach give the annual report about Distance Education.

6.8 STUDENT SERVICES REPORT

Dr. Kevin O’Rorke, Assistant Superintendent/Vice President of Student Services, greeted the Board and provided the following report: There is a lot of positive energy around athletics – the dorm students and Student Services are putting on a tailgate BYOF (bring your own food!). Please come out and support the football team. Last month we did the SOS stations, where the administrators of the college set up tables during the first week of school to help welcome the new students to campus. It is a great way for the administrators to meet the students and help them out. We also had a successful “Welcome Day” on August 23rd. We had a record high of over 70 resource tables out in the quad. There was a lot of music and entertainment, and a lot of fun. It was a great way to start off the semester. I am very proud to announce that Shasta College has started an Umoja program. Umoja is a Swahili word for “unity.” It is geared towards personal growth and academic develop-ment for our African-American students, but it is open to all students. Our project lead is Jerry Brown, who is also our head women’s basketball coach and an overall great person. And also we have some staff members assigned to the program, Rashan Williams, Nate Stidum, and Sonia Randhawa is the Counselor for the program. We anticipated that 25 students would sign up and we have had 70 students sign up. We are having our first offi-cial meeting tomorrow, so we are excited about that. On September 11, we continued with our tradition, we placed 2996 flags on the quad lawn in memory of the lives that were lost. I would like to thank the students and classified staff for all of their work to make this possible. On Friday September 15 and the 25th, we having Career Days. We are expecting over 1,500 eighth graders from 24 local middle schools on campus. That is always a great event, we had many participants that we had to break it up over two Fridays. It is never to early too start planning your career! Our Office of Student Equity and Inclusion, lead by Dr. Sharon Brisolara, is co-sponsoring some DACA informational sessions for our students or community members who may have some questions. We are working together with a Department of Justice Immigration Specialist, Mariela Hernández-Torres. The first session is on Thursday, September 14 at the Tehama Campus from 12-3 p.m. and the second session will be at the main campus on September 28 from 1:30-2:30 p.m. Also, I am very happy to announce that Dr. Wyse authorized us to hire a longtime faculty member, Sal Valdivia. He taught here for 35 years. He will be our Hispanic Outreach Specialist, he will be working at the Tehama and Redding campuses. He will also be going to churches, grocery stores, and places in the community to try to reach out to our Hispanic population. If you don’t know Sal, he is a wonderful per-son who will always make you smile. So we were very happy to pull him out of retirement. For a North State Together update, we had the President of CSU Chico up in Redding. She spoke to the Rotary Club and mentioned Shasta College many times, and she also mentioned North State Together, it was good to have the recognition.

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We are up in Trinity tomorrow and next week we are in Modoc County. Hopefully we will have all 5 counties up and running soon.

6.9 ADMINISTRATIVE SERVICES REPORT

Mr. Morris Rodrigue, Assistant Superintendent/Vice President of Administrative Services, greeted the Board and provided the following report: I would like to look at the Budget to Actuals Report. On page 6, Academic Instructional is at 0% because they are 10 month employees. Overall, we should be at 8.3% and we are tracking at 7.1%, so we are comfortable with this report. Dr. Wyse eluded alluded to the fact that we have sold some bonds and it was successful, so I invited Jon Isom from Isom Advisors to give a presentation about the sale of the bond and to answer any questions that you might have. Jon Isom greeted the Board and provided the following report (attached hereinto as Exhib-it A): Last time I was in front of you it was early 2016, we were talking about if you put a bond on the ballot – did we think it would pass. This presentation gives you a review of the very successful bond sale. In this first bond sale, we sold $50 million. Similar to an individual, organizations also have a credit score. We went down to meet with a couple of the rating agencies, Standard & Poor’s and Moody’s. S&P upgraded Shasta College’s score to AA, which is 2 away from the top. Moody’s gave the same rating that they had before, As2, but this is already a good rating, and it is also only 2 away from the top rating. Dr. Wyse and Mr. Rodrigue did a good job representing Shasta College. When you sell bonds, it is a 2 day process. You have the pre-pricing conversation, then the underwriter goes out and get bids, and then they come back and the final price is set. The district’s repayment ratio of 1.53:1.00 – this is a great ratio – which means for every $1.00 borrowed, there is $0.53 in interest to repay. On page 4, it shows the interest rate environment and the average for the last 16 years is 4.36% -- we sold at 3.57%. On page 5, it gives an idea of the total cost which is $241,000. Then on pages 7 & 8 – it gives some context of what is going on in the market when we did the bond sale. From the pre-pricing call to when the prices are set, the difference was about $750,000 in the favor of the college and taxpayers. Mr. Rodrigue said that when we had to meet with the ratings agency, it was Mr. Isom that advised us to go down and meet them in person and not do it via a conference call. The expertise that they provided was key in getting those good ratings.

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Dr. Wyse said on page 9, if you look at the “Orders” column, you see that it totals $221,805 million – this represents the demand for the bond.

7. APPROVAL OF MINUTES

7.1 MINUTES OF THE REGULAR MEETING OF THE BOARD AUGUST 9, 2017

Dr. Wyse said that there is a correction to page 7, these are the minutes from the Regular Meeting of the Board on August 9, 2017 and not from the Board Retreat as indicated. Mrs. Pratt said that on page 8, there is a mistake, where it says “… customer service and some of the students were hired” and it should be “two students were hired.” It was moved by Dr. Lydon and seconded by Mr. Pierson TO APPROVE THE MINUTES OF THE REGULAR MEETING OF THE BOARD HELD AUGUST 9, 2017 AS CORRECTED. The matter passed 7-0.

8. CONSENT/ACTION AGENDA

Dr. Wyse said that there is one correction on page 163, Item 8.7 Ratification of Contracts and Agreements, the Personal Services Agreement for Heather Wiley was not executed and so it has been removed from the list of contracts to be ratified. Also, the second to last item, we have the wrong end date -- it should be 2018 and not 2017. It was moved by Mr. Pierson and seconded by Mr. Steinacher TO APPROVE THE CONSENT/ACTION AGENDA AS CORRECTED. The matter passed 7-0.

9. DISCUSSION/ACTION AGENDA

9.1 DISTANCE EDUCATION ANNUAL REPORT

Dr. Andrew Fields, Dean of Extended Education, and Mr. Will Breitbach, Dean of Library Services and Educational Technology, gave the following report, attached hereinto as Ex-hibit B, which is required by Board Policy: Mr. Breitbach said that I would like to start off by bragging a bit about our success rates. We are above state wide averages in 3 different types of teaching. Online keeps going up and it is at 71.46% for the last completed semester – this is a similar rate as our Face2Face success rate. The total number of people online is 6,923 duplicated FTES. Our retention rates are similar, Shasta College is above the state average in every catego-ry. Mr. Carr asked why do we have such good rates? Mr. Breitbach said that we have good training for our faculty and we have been doing it for long time. Mr. Carr asked is there more dependence on online classes in rural areas? Mr. Breitbach said that I would speculate that the demand is higher in rural areas, but there

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is also the challenge with bandwidth. We have about 25% of our students in distance education. For enrollments, you see a slight decrease in Face2Face, but this is offset with the slight increase in online and ITV. We have a great online pedagogy training available and nearly 80 faculty members have completed this training. We have online training for students as well. Every time a student enrolls they get an email with an invitation to do an online training and 1,200 students have opted to do so. Faculty workshops are done both in person and via webinars. The success rate of 71.46% puts us in the top 10 or 11 community colleges in the state. Mrs. Pratt asked for the faculty workshops, does this include only our faculty or other peo-ple’s faculty. How many faculty members make up the 212 hours? Mr. Breitbach said that I would guess about 50 faculty members. We have invited the Col-lege of Siskiyous for training as well. Mr. Carr asked what are the other colleges doing? Mr. Breitbach said that Butte College is at about 5% and the College of the Siskiyous is less. Mr. Breitbach said that we have a group of faculty helping us chart the future for online courses. We have 2 fully online degrees, but most of the online courses are supplement-ing traditional degrees. Mrs. Pratt asked how are the students being directed? Mr. Breitbach said that the students are not directed, we give them choices. We will be looking to these workgroups to advise us on which courses we could offer online. The Ed-ucational Technology team is always looking for ways to support the faculty and students and we are doing media support. Mrs. Pratt said that since we have more online courses than College of the Siskiyous and Butte College, does this mean that their students are coming here? Dr. Wyse said that in the last study that we did in 2014, we found that more than 95% of the online students were in our geographical area. It seems like more people who were taking evening classes are now taking online classes. Mr. Carr asked if we can identify where the students come from? Dr. Fields said that we are working on identifying the people by their zip code. Dr. Fields said that we have talked a lot about pathways, and we are taking this into more consideration when we are scheduling courses. With ITV we are heading in a new direction – it is our synchronous online tool. A couple of years ago, we noticed that ITV were the only courses that are scheduled individually. It has taken over 2 years to develop the new process. We started with community partners

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and presented a lot of historical data – then we asked what we should offer. Then we worked with the Deans to work on a new strategy to overcome some of the challenges. It is tough finding faculty interested in doing ITV, they have to work a camera etc. We also have to be sure that we are scheduling correctly and that we are not creating scheduling conflicts. ITV has a very expensive infrastructure and it has limited capacity. Mr. Carr asked if it could be used in a center like the Cottonwood Community Center? Dr. Fields said that we have worked with a partner in Amador County before, but wherever we do ITV, we will have costs because it requires to have staff available to support it. Dr. Fields says that our new strategy lets us focus on student options. There are a lot of students in extended education that want to know what they can do without having to move out of the area. They have issues with internet connection, and many can’t travel. We are trying to merge the systems as well – so that we offer ITV courses that comple-ment the online courses. Weaverville is where we are having the most challenges with in-ternet connection. We want to have our sites become learning centers – many students aren’t ready for online. A paraprofessional can help the students learn good skills to com-plete the courses. We want to bring the community into the centers and have the students use our computers to do the online courses. We have computers in Trinity and Tehama that are underutilized. We have some comput-ers in Burney and we need some more. Part of this process is to reimagine the model – now we are thinking about it like more of a learning center model. This could open up a lot of different options. Mr. Carr asked is there schedule rigidity – they have to watch it a certain time? Dr. Fields said for synchronous ITV yes – for the asynchronous ITV, no, they do not. I have spoken to quite a few of business managers and there are people who need addi-tional degrees to be eligible for promotions – but they do not have the time to do it. They could do these degrees at our sites with the support of a paraprofessional. We have a po-sition description in for the Union to consider right now. We feel like if we are going to promote online classes, we need to be sure that we give the students the tools to succeed. We are also focusing on the cohesion between ITV and online classes. What can we pro-vide to these rural students? As we focus on the learning center model we our scaling our offer and lowering the cost of the system. Mr. Swendiman said that I received a call asking for help to pass a bill. They said that this bill would eliminate the overreach of local agencies and fee structures and will allow for broadband to cover the state. It sounded like a good bill. Dr. Fields said that I am not familiar with this bill, but there are lots of discussions about making internet more of a utility, there are bound to be many bills and lots more of discus-sions on this topic. Dr. Nigro said that there has been a lot of thought and work on putting together this strate-gy. Dr. Fields has worked with the other Deans, and now we are really having ITV com-plement the online courses. ITV might give us the chance to offer courses that we just wouldn’t be able to do Face2Face. I also want to complement Mr. Breitbach – these suc-

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cess rates are really incredible and I think that all of this work, support, and training has made it possible. Mr. Carr asked could we look into using ITV at other sites that are not Shasta College brick and mortar sites? Could we use it at a Community Center? Dr. Nigro said that the equipment costs are significant, and the technology is constantly changing, and it requires staffing. Dr. Fields said that something that we are looking at, since this is our synchronous online tool, we are also looking at what is the next synchronous online tool. Mr. Carr said that technology migration is a huge challenge. Dr. Fields said at Burney High School, there are several ITV rooms that sit there and they aren’t used (and we can’t use them because they were grant funded and their usage is re-stricted). Mrs. Pratt said that the connections that you are making with people are great. Often, we have the tools that we put up there, but the people are not ready, and you are working with them to get them ready. Dr. Fields said that each site has its challenges – there are both similarities and differ-ences. It was moved by Dr. Lydon and seconded by Mrs. Pratt TO ACCEPT THIS REPORT. The matter passed 7-0.

9.2 ADDENDUM TO ACCREDITATION SELF-EVALUATION

Dr. Nigro said this addendum is for our Bachelor’s degree which is fully online, you saw the report last year. This addendum corrects some things in the catalogue, some updates on programs, reviews, and SLOs. It was moved by Dr. Lydon and seconded by Mr. Carr TO ACKNOWLEDGE RECEIPT OF THE ADDENDUM TO ACCREDITATION SELF-EVALUATION. The matter passed 7-0.

9.3 PUBLIC HEARING REGARDING 2017-2018 BUDGET

Mr. Rodrigue said that this item is to open the public hearing on the 2017-18 budget. Ms. Nehr said that the public hearing is open, hearing no comments, we will close the pub-lic comment. This is a public comment item and no action is required.

9.4 ADOPTION OF 2017-2018 BUDGET

Mr. Rodrigue said in June you saw a tentative budget, which is a spending plan until the state puts together the actual budget. The presentation is attached hereinto as Exhibit C. Here are some key items on the 2017-18 budget: We had a good base increase – $1.1 million for Shasta College. This will be used for in-creases in operating costs with the most significant cost being the increase in STRS/PERS. This was much higher than expected.

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COLA came in at 1.56%. Guided Pathways is a multi-year spend down. The $487,000 for deferred maintenance and instructional equipment funding is one-time money because you never know how much it will be each year. This year we are in stability, we will not be capturing any of the 1% of growth funding. We always like to look at our key challenges. STRS/PERS will be a big ongoing challenge. We have been doing a good job on the Retiree Health Benefits, we always try to put in money into the OPEB fund. For enrollment, we budgeted about 7,220, and we should be at this level. Mrs. Pratt said that when we are stabilized, our funding doesn’t go up, but we still give little raises in salary and costs go up, so are we not losing money? Mr. Rodrigue responded, no, stability means that for this year, we are funded at the same number of FTES. But we can still end up getting more money due to the base increase and if COLA goes up. In Budget Committee, we project to see what is going to happen. We build a model and make projections in the future. Dr. Wyse said that if you look at page 210, where you have the historical figures, if you look at the estimated 2016-17 total revenue, this year estimate is $1.1 million higher. Mr. Rodrigue said if you look at page 215, this is the income of the unrestricted general fund. The 2017-18 budget is $45.5 million and the estimated actual for 2016-17 is $44.4 million. Then take a look on page 217, there is a box on the bottom, where the Total Com-pensation Revenue (TCR) is broken down. That is what is really based on FTEs, a certain amount is based on being a college of a certain size and the rest is based on the actual FTEs. If we didn’t get that base increase or COLA, then we would be looking at holding on hiring. Mr. Carr said that on page 209, in 2009-2011 the FTEs goes down. Are we in a downturn trend? Mr. Rodrigue said that in 2015-16 and 2016-17 we were swinging up, we had a lot of focus on enrollment and dual enrollment. There can be declines in other areas. As we are look-ing from Fall 2016 to Fall 2017, we are looking at a decline. Dr. Wyse said that in 2015-16, we didn’t claim the summers and in 2016-17 we did claim the summers. Mr. Rodrigue said that a FTE is 525 hours seat time. Mr. Carr asked are you concerned about a downturn? Mr. Rodrigue said we might be smaller in 2018-19. We look at projections, we can see where we will end up if we don’t withhold on hiring, we can see what the fund balance will look like. We can do the hiring of faculty in the fall because we have the necessary fund balance to not make radical decisions.

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Mr. Carr asked what can we do to increase enrollment? Mr. Rodrigue said that we have an enrollment committee that works to actively enhance our enrollment and put things in place to help us drive FTEs. Mrs. Pratt asked do the areas in decline, do they cost us money? Mr. Rodrigue said that we try to operate as efficiently as possible. When we are trying to capture growth, we operate a little less efficiently to try to capture the most FTEs. Before canceling a class, we look at what type of class it is, and if it is required for majors. Mr. Carr asked is there anything that the Board can do to help with FTEs? Mr. Rodrigue said that by supporting the good ideas that are being presented, you will be helping enrollment. We want to be sure that we are hitting the needs of the community. State wide the majority of districts are in decline. The FTEs follow the economy, when the economy is good, the FTEs go down, when the economy goes down, our FTEs go up. For the Retiree Health Benefits – we just got the latest actuary report, and our liability is trending down and it is now at $38.7 million. The most expensive retirees are from pre-1989 – both the retiree and their dependents get full benefits. We have $2.7 million cost this year, this is starting to flatten. It is projected to peak at $3.2 million in 2024. STRS/PERS is the next real challenge. STRS is in statute, PERS is a projection, and it is projected to grow faster than STRS. Even if we don’t get a base increase, STRS/PERS will both still be increasing. It looks like we are going to be in the black by about $5,000, we did put a little less into the OPEB trust this year. We generally put about $500,000 - $600,000 into the trust and this year we put $387,000. Dr. Lydon said that there is a mistake in the 2016-17 Estimated Actual slide. Mr. Rodrigue said, you are correct, look at page 217, and it shows the correct Net Income of $5,188. For 2017-18 we are projecting that we will be in the black by $12,000. This is assuming that we will not be making a deposit in the OPEB trust. Based on historical factures, we are using a 4% discount factor. It was moved by Dr. Lydon and seconded by Mr. Pierson TO ADOPT THE PROPOSED FINAL 2017-2018 BUDGET FOR ALL DISTRICT FUNDS. The matter passed 7-0.

9.5 2017-2018 SPENDING PLAN FOR THE EDUCATIONAL PROTECTION ACCOUNT (EPA)

Mr. Rodrigue said a number of years ago when Proposition 30 passed, we had to set up an account and plan to show where we are spending those dollars. These funds cannot be spent on administrator salaries. It was moved by Mr. Pierson and seconded by Mr. Steinacher TO APPROVE THE 2017-18 SPENDING PLAN FOR THE EDUCATIONAL PROTECTION ACCOUNT FUNDS. The matter passed 7-0.

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9.6 2017-2018 GANN APPROPRIATIONS LIMIT

Mr. Rodrigue said that this is a report that we bring each year for your approval. Back in the Proposition 13 days, they wanted to keep track of appropriations. Our appropriations are well below the limit. It was moved by Mr. Steinacher and seconded by Mrs. Pratt TO APPROVE THE 2017-2018 APPROPRIATIONS LIMIT CALCULATIONS. The matter passed 7-0.

9.7 AMENDMENT TO THE CAFETERIA PLAN 125 AND FLEXIBLE SPENDING PLAN AND

ADOPTION OF RESOLUTION NO. 2017-18-05

Mr. Rodrigue said that American Fidelity helps us each year to make sure that we are compliant with all the requirements. It was moved by Mr. Steinacher and seconded by Mr. Pierson TO APPROVE THE AMENDMENT DOCUMENTS AND ADOPT RESOLUTION NO. 2017-18-05 AS PRESENTED. The matter passed 7-0.

9.8 RESOLUTION NO. 2017-18-06 FOR TRANSFER OF FUNDS

Mr. Rodrigue said that whenever we are off in a certain category, we have to ask Board approval to transfer funds. On page 216, if we look at the Academic Salaries, the budget for 2016-17 was $17.1 million and the actuals was $17.6 million – so we need to augment this category. The second category that we have to augment is Other Outgo. It was moved by Mr. Pierson and seconded by Dr. Lydon TO ADOPT RESOLUTION NO. 2017-18-06 AUTHORIZING THE TRANSFER OF FUNDS TO COVER BUDGET EXPENDITURES FOR THE 2016-2017 FISCAL YEAR. The matter passed 7-0.

9.9 ADMINISTRATIVE RESTRUCTURING

Dr. Wyse said that during the last Board meeting, Dr. O’Rorke talked about the restructur-ing in Student Services, so we are bringing this for your approval. It was moved by Mr. Carr and seconded by Mr. Steinacher TO APPROVE THE ADMINISTRATIVE RESTRUCTURING. The matter passed 7-0 .

9.10 INCOME AND EXPENDITURES – CASH BASIS

Mr. Rodrigue said that we are bringing this monthly report to the Board for approval. On page 280, we can see that at $12.9 million, the cash level is looking good. Looking at Fund 23, the one big payment is on the other bonds that we have. It was moved by Dr. Lydon and seconded by Mr. Steinacher TO APPROVE THE INCOME AND EXPENDITURES – CASH BASIS REPORT FOR THE MONTH OF JULY 2017. The matter passed 7-0.

9.11 QUARTERLY FINANCIAL REPORT FOR APRIL 1 – JUNE 30, 2017

Mr. Rodrigue said that you can see that with this quarterly report, there is a little difference on the estimated actuals and the budget. On page 285, one of the items is “Part 7 – Signif-icant Problems?” For 2017-2018, we can answer “No” to this question. In the next quar-terly report we might be concerned about the FTES. Mrs. Pratt said kudos for the bigger font!

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Mr. Rodrigue said that we should thank Peggy Himbert for that. It was moved by Mr. Pierson and seconded by Mr. Carr TO ACKNOWLEDGE RECEIPT OF THE 2016-2017 FOURTH QUARTER FINANCIAL STATUS REPORT IN COMPLIANCE WITH EDUCATION CODE 84040.3. The matter passed 7-0.

9.12 AUTHORIZATION TO ENTER INTO AGREEMENT WITH CREATORUP VIDEO SERVICES

Mr. Rodrigue said that Ms. Chelsea Hendershot, Senior Project Coordinator – Career Pathways Trust, will explain this agreement. Ms. Hendershot said that this is a company that we have worked with during the last few years. They are going to make 10 new videos that are contextualized to the sectors found in “Doing What Matters” and they are also going to update 50 videos that already exist. Mrs. Pratt asked are these a tool to be used in training? Ms. Hendershot said yes, they are used in workshops. Dr. Lydon asked if there was a guess on the timeline for the project? Ms. Hendershot said that I would suspect about a six-month time frame. Mr. Carr asked if the cost, $110,000 incorporates everything? Is there any risk of scope creep? Ms. Hendershot said that this price includes everything. It was moved by Dr. Lydon and seconded by Mr. Carr TO AUTHORIZE DISTRICT STAFF TO ENTER INTO AGREEMENT WITH CREATORUP AS PRESENTED. The matter passed 7-0.

9.13 AUTHORIZATION TO ENTER INTO AGREEMENT WITH FERILLI HIGHER EDUCATION

TECHNOLOGY CONSULTANTS Mr. Rodrigue said that we have talked about the Hobson Starfish program before, so in this

contract we are looking to these consultants to help with the implementation of the system. Dr. O’Rorke said that we are looking to expedite the implementation and this is paid out of Student Success and Support Program (SSSP) funds. It was moved by Mr. Steinacher and seconded by Mrs. Pratt TO AUTHORIZE DISTRICT STAFF TO ENTER INTO AGREEMENT WITH FERRILLI HIGHER EDUCATION TECHNOLOGY CONSULTANTS AS PRESENTED. The matter passed 7-0 .

9.14 ACCESSIBILITY PLAN

Mr. Rodrigue said that this is something that we have been working on for a while – this is a long-term plan on how we can remove barriers on campus. This ties into the bond and gives us a plan on how to move forward. Dr. Wyse says that it also shows us a history of things that we have done to increase ac-cessibility.

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Mr. Rodrigue said that we had a visit by the state organization that evaluates campuses, and this was very helpful. We have brought in an architect to come up with plans on how to address accessibility issues. Ms. Nehr, the Board President, ACKNOWLEDGED RECEIPT OF THE DOCUMENT, AS PRESENTED. The matter passed 7-0.

9.15 EMERGENCY OPERATIONS PLAN

Mr. Seay said this plan has been a long time coming. This is a result of what the Board di-rected us to do. It ties directly into the training that we did with the 44 staff members on campus. The same consultant that did the training also reviewed the plan. Ms. Nehr asked how is it working out with having Redding Police Department (RPD) on campus? How is the college community accepting the officers? Mr. Seay said that it is going better than expected. We have had some great meetings with RPD and we are seeing positive responses from our student and faculty. Mr. Rodrigue said that when you combine what is in this plan with the participation of the RPD, the impact is significant. Mr. Seay said that there is a regular review that will been done every 12 months and it will also be reviewed by FEMA on a yearly basis as well. Ms. Nehr said that I have to say, I see such progress, we have to attribute that to how well the senior management works together and how they got everyone to buy into the project. Thank you for all of your hard work. Ms. Nehr, the Board President, ACKNOWLEDGED RECEIPT OF THE DOCUMENT, AS PRESENTED.

10. ANNOUNCEMENTS

10.1 FUTURE REGULAR BOARD MEETING DATES

Ms. Nehr announced the future regular Board Meeting dates as: October 11, 2017 November 8, 2017 December 13, 2017

11. COMMENTS FROM INDIVIDUAL MEMBERS OF THE BOARD

Ms. Nehr asked if there were any comments from the individual members of the Board. Mrs. Pratt said that I wanted to thank you for the New Trustee Orientation Workshop that took place on the day of the big eclipse. I have been around here for most of my life, I drive around all of the time, but that tour was very impressive. How this old school has be-come new inside the buildings, it was a great workshop Dr. Wyse. Dr. Lydon said that it has been a real honor to be part of this institution, a lot of my constit-uents say that the College has gotten better and better – so kudos to everyone in the facul-ty and staff.

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Mrs. Pratt said that we do hear out in the community and on the radio how well Shasta Col-lege is doing – so thank you for working so hard and being so bright and capable.

12. COMMENTS FROM THE AUDIENCE

Ms. Nehr asked if there were any comments from the audience. There were no comments. 13. RECESS TO CLOSED SESSION

Ms. Nehr recessed the meeting to Closed Session at 9:00 p.m. regarding: 13.1 California Government Code Section 48912: CONSIDERATION OF STUDENT SUSPENSION OR OTHER DISCIPLINARY ACTION – NOT EXPULSION 13.2 California Government Code Section 54957: PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE 13.3 California Government Code Section 3549.1:

COLLECTIVE BARGAINING SESSION 14. RECONVENE IN OPEN SESSION

Ms. Nehr reconvened the meeting in open session at 9:28 p.m. and said with respect to all closed session items, there is nothing to report.

15. ADJOURN

It was moved by Mrs. Pratt and seconded by Mr. Steinacher TO ADJOURN THE MEETING. The vote was 7-0 in favor of adjournment. Board President Rhonda Nehr adjourned the meeting at 9:29 p.m.

Respectfully submitted,

Andree Blanchier Recorder

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1470 Maria Lane, Suite 315 | Walnut Creek, CA 94596

Shasta-Tehama-Trinity Joint Community College District

Summary of Sale Results

General Obligation Bonds, Election of 2016, Series A

by

Isom Advisors,a Division of Urban Futures, Inc.

September 13, 2017

Exhibit A

1

Shasta-Tehama-Trinity Jt. CCD2016 Authorization Overview

Bond Program Overview

Issue Date Issue Name Par Amount

August 2017 Series A(Tax-Exempt) $50,000,000

2020 Series B(Tax-Exempt) 31,500,000

2023 Series C(Tax-Exempt) 28,450,000

2026 Series D(Tax-Exempt) 29,050,000

Total: $139,000,000

On November 8th, more than 55% of District voters approved Measure H, which authorized the sale of $139 million in general obligation bonds. Proceeds of the Measure H bonds will be used to improve college facilities to provide education and job training opportunities for students, renovate and expand science, technology, engineering and math labs, training facilities, upgrade electrical systems, acquire, construct/repair facilities, sites, and equipment.

The tax rate is estimated to be $19.00 per $100,000 of assessed valuation. The authorization was approved under Prop 39 guidelines.

The Series A Bonds represent the first of four projected series of bonds related to Measure A.

2

Shasta-Tehama-Trinity Jt. CCDCredit Rating


Prior to the Series A bond sale, District staff and the finance team had in-person meetings with credit analysts from Moody’s Investors Service and Standard & Poor’s to present the District’s credit and receive a rating on the Series A Bonds.

Standard & Poor’s upgraded its bond rating to “AA” citing as strengths:Large tax base that is very strong on a per capita level;Strong financial policies and practices that include good enrollment management practices;Captive service area that is producing a stable enrollment trend; andMaintenance of very strong available general fund balances, which management expects will continue.

Moody’s affirmed the District’s bond rating of “Aa2” citing as strengths:Large tax base poised for continued moderate growthHealthy financial position support by strong reserves and liquidityStrong management team and significant operating flexibility inherent to California community college districts

3

Shasta-Tehama-Trinity Jt. CCDBond Sale Highlights


The District’s Bonds were sold through a two-day negotiated sale process (August 16th and 17th) with underwriter Morgan Stanley.

The structure and preliminary interest rates were established on the first day; the final structure and interest rates were set on the second day in response to the market.

The Series A Bonds were structured as 25-year current interest bonds with the option to refinance in 10 years; interest is paid semi-annually and principal is paid annually until August 1, 2042.

The debt service was structured assuming a 3.5% long-term assessed value (“AV”) growth rate and an estimated tax rate of $19.00 per $100,000 of AV.

The Series A Bonds had total debt service (principal and interest) of $76.6 million ($50,000,000 in principal and $26,587,450.50 of interest) for a repayment ratio of 1.53:1.00 – or for every $1.00 borrowed, there is $0.53 in interest to repay.

The true interest cost (overall weighted average cost of borrowing) was 3.28%.

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4

Shasta-Tehama-Trinity Jt. CCD

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

6.00%

Bond Buyer 20 Bond Index(January 1, 2001 to present)

High: 6.01% (10/16/08)Low: 2.80% (7/14/16)

Average: 4.36%Current: 3.49% (9/7/17)

2.50%

2.75%

3.00%

3.25%

3.50%

3.75%

4.00%

4.25%

Bond Buyer 20 Index Rates - Last 24 Months

Interest Rate EnvironmentLow Interest Rate Environment

The District sold the Series A Bonds on August 17, 2017 – the BB Index was at 3.57%; the BB Index has averaged 3.48% over the past two years.

Source: The Bond Buyer

current yield

average yield

5


Costs of IssuanceFinal Costs of Issuance

The table below presents the costs of issuance of the financing.

Shasta-Tehama-Trinity CCD$50,000,000

Costs of Issuance - Elec of 2016 GO Bonds, Series 2017Closing: August 24, 2017

Firm Service Fee Estimate Stradling, Yocca, Carlson & Rauth Bond & Disclosure Counsel Fee & Expenses $88,000.00U.S. Bank, N.A. Paying/Escrow/COI Agent $4,500.00Isom Advisors Financial Advisor Fee & Expenses $72,225.47Isom Advisors - Cal Muni Reports Demographic & Financial Reports $1,450.00Avia Communications POS/OS Distribution & Printing $756.64S&P Global Ratings Rating Fee $30,000.00Moody's Rating Fee $32,000.00Causey Demgen & Moore Verification $3,000.00

Contingency $9,067.89 Total Costs of Issuance $241,000.00

Appendix AMunicipal Market Conditions and

Summary of Sale Results

7


Municipal Market NewsPre-Pricing: Wednesday, August 16th


27

8


Municipal Market NewsPricing: Thursday, August 17th


9


Detailed Pricing InformationThe difference between pre-pricing and pricing was $746,224

Strong demand for the Series A Bonds and negotiations between the financial advisor and underwriter resulted a reduction in borrowing cost between the pre-pricing and the pricing. Net debt service decreased $746,224 and the TIC was lowered 0.08%.

Investors included major bond funds, insurance companies, and local “mom & pop” customers.

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Will Breitbach, Dean of Library Services & Educational TechnologyDr. Andrew R. Fields, Dean of Extended Education

Distance EducationShasta CollegeBoard Report

September 2017

Exhibit B Success Rates

0%

10%

20%

30%

40%

50%

60%

70%

80%

Face2Face Online ITV

75% 68% 67%

71%

63% 61%

3 year average: Fall 2014 to Spring 2017

Shasta College State-wide

Retention Rates

76%

78%

80%

82%

84%

86%

88%

90%


89%

86% 86% 87%

81% 83%

3-year Retention Rates Fall 2014 - Spring 2017

Retention Comparison Retention Comparison

FTES by Instructional Method

3-Year Average Fall 2014-Spring 2017


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Shasta College Enrollment Trends

17,568 17,652 17,867 17,038

18,061

16,015

5,198 5,365 5,550 6,044 6,611 6,923

1,422 1,373 1,519 1,166 1,509 1,327

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Fall 2014 Spring 2015 Fall 2015 Spring 2016 Fall 2016 Spring 2017

Enrollments Fall 2014- Spring 2017


Online Successes 16/17• Online pedagogy training (76 + faculty since

14/15) • Online LMS training (more than 1200 students

since 15/16) • Student workshops (66 students served) • Faculty workshops (212 hours of professional

development) • Success rates continue to increase (71.46% in

Spring 2017)

Future Developments• Enhancing pathways toward completion

• Programs offered 100% online or in combination with ITV

• Student and faculty support

• Development opportunities (faculty and students) • More media support for example

New ITV Strategy

• 2+ Years to develop • Participatory governance process

– Community – Deans/Extended Education Counselors – Instructional Council – Distance Education Committee – Academic Senate – Counselors

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ITV Challenges • Interested faculty • Scheduling

– Coordination with division deans – Separate scheduling than online and F2F

• Expensive infrastructure • Limited capacity • Relatively flat, or slight declining FTES • Costly to scale

New ITV Strategy

• Centered on student options – Rural challenges

• Limited connectivity • Distance

– Provide educational options • More available courses/pathways • BOLD +

• “What can I accomplish here?”

New ITV Strategy

• Reduce 2-year schedule to annual – Courses not available online – High demand GE courses

• Increase broadband to all sites • Promote Online courses

– Computer use • Learning Center model

– Paraprofessional support

Measure Full Value of Extended Sites?

• Online FTES assigned by zip code • Find ways to capture data?

– Outreach – An information hub – Conduit to the main campus

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ITV Summary

• Cohesion between ITV and Online – Efficiencies with College resources

• More options for rural students – Learning Center model – Scale our lower-cost technology

delivery system

Questions?

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22017-18 Final Budget

Exhibit C KKey State Budget Items • $ 183.6 million base increase (Approximately $1.1

million ongoing to Shasta College) • $97 million to fund COLA at 1.56% • $150 million to fund Guided Pathways • $76.9 million for deferred maintenance and

instructional equipment funding ($487,000 one-time to Shasta College)

• Growth Funding of 1%. The District is in stability for the 2017-18 year and will not be able to access growth funding.

Key Budget Challenges

• STRS/PERS • Retiree Health Benefits • Enrollments • Potential Economic Declines

ENROLLMENTS

• 7220 budgeted FTES for 2017-18 • Stability in 2017-18 • Enrollments Trending down from

Fall 2016 to Fall 2017

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Retiree Health Benefits

• OPEB trust funded at $14.3 million • Net OPEB Liability $38.7 million • Retiree health care costs are

projected to peak at about $3.2 million in 2024

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

2017-18 2018-19 2019-20 2020-21

STRS/PERS Estimates

CalPERS CalSTRS

Total Income 44,437,160$ Total Expenditures 44,437,971$ Net Income (Loss) 5,188$

2016-17 Estimated Actuals

Total Income 45,540,263$ Total Expenditures 47,425,182$ Dicount Factor(4%) (1,897,007)$ Projected Expenditures 45,528,175$ Net Income (Loss) 12,088$

2017-18 BUDGET

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Minutes of the Regular Meeting of the Board

Documents

Transcript of Minutes of the Regular Meeting of the Board