January 2000 Board Meeting Minutes

Board of Trustees Meeting Minutes
Wednesday, January 19, 2000

World Trade Center
St. Paul, Minnesota

Trustees Present: Andrew Boss, Nancy Brataas, Brent A. Calhoun, Mary Choate, Dennis Dotson, David Erickson, Robert Erickson, Christine Fritsche, Jim A. Luoma, Joann Splonskowski, James Wafler, Michael Vekich, Chair

Trustees Absent: Kathleen Caffey, Daniel G. Coborn


  1. Call to Order
    Chair Vekich called the meeting to order at 2:05 p.m. and reported that a quorum was present. There were no changes to the agenda.

  2. Chair's Report
    a. Approval of Minutes of Board of Trustees Meeting of December 15, 1999

    b. Approval of Minutes of Board of Trustees Public Hearing on Anoka-Hennepin Technical College Site Selection of January 12, 2000
    Trustee Robert Erickson moved approval of the above-referenced minutes. Trustee Choate seconded and the minutes were approved without dissent.


    c. Report of the Executive Committee, January 5, 2000
    Chair Vekich reported that the Executive Committee met on December 1.


    d. d. Other
    Chair Vekich reported that the third annual foundation thank you luncheon was held earlier in the day. St. Paul Mayor Norm Coleman spoke at the luncheon honoring MnSCU institutions and their foundations.

    Chair Vekich commented on the fundraising efforts underway at Minnesota State University, Mankato and St. Cloud State University.

    Steven Ludwig, assistant vice president for facilities management, St. Cloud State University recently won the leadership award from the Minnesota Council of Managers. This is an annual award that recognizes state managers who provide inspirational leadership to their workforce.

    Chair Vekich recognized St. Cloud Technical College, President Joan Barrett, the St. Cloud Technical College Foundation and Trustee Coborn for their work on the college's first-time capital campaign.
    Trustee Luoma, chair, ad hoc Legislative Committee, announced Wednesday, February 16 at St. Paul Technical College as a tentative date for the annual Friends of MnSCU Legislative Dinner.

  3. Trustee Reports
    Trustee Robert Erickson serves as the Board's liaison to the NorthStar State Colleges and Universities Foundation. He introduced Lee Hanson, who has been active with the St. Cloud State University Foundation and the NorthStar Foundation, and who was present to provide an update on the NorthStar Foundation's reorganization.

    Mr. Hanson explained that the NorthStar University Foundation was originally established in November 1968. When the state universities became part of the state colleges and universities system, the foundation re-evaluated its mission and role. After extensive deliberation, the foundation has redefined itself as the NorthStar State Colleges and Universities Foundation and in September 1998 ratified a new mission to support the students, programs, and institutions of all of the Minnesota State Colleges and Universities. This includes managing special types of donations that are not available to local campus foundations, such as contributions made available on a statewide basis, and for more than one institution. Mr. Hanson commented that the foundation will meet in a retreat in February to discuss fundraising from national and international corporations.

    Trustee Robert Erickson thanked Linda Kohl, associate vice chancellor for public affairs, Peg Boots, director for development, Joyce Petsch, foundation secretary/treasurer and their associates for all their work.

    Trustee Splonskowski announced that she participated in Metropolitan State University's commencement ceremony on January 6, and Northwest Technical College's ribbon-cutting ceremony on January 11. Trustee Calhoun announced that he attended Northwest Technical College's ribbon-cutting ceremony on January 11, and Minneapolis Community and Technical College's ceremony on January 15, celebrating Martin Luther King's birthday. Trustee Luoma announced that he attended the ribbon-cutting ceremony for Lake Superior College's Technology Center in Duluth, on January 14, 2000.

  4. Chancellor's Report: Morris J. Anderson.
    Chancellor Anderson announced that Larry Shellito, president, Alexandria Technical College, and chair of the System Office Task Force, will present an overview of the Task Force report. Chancellor Anderson explained that this item is slated for action at the February meeting, in time to coincide with the 1999 Legislature's request that MnSCU submit a report by February 15, to the higher education finance committees.

    a. System Office Task Force Report
    President Shellito identified the other members of the task force: Roland Barden, president, Moorhead State University; Tom Horak, president, Normandale Community College; Kathy Nelson, president, Lake Superior College; Gene Gilchrist, vice president, St. Cloud State University; Josephine Reede-Taylor, vice president, academic affairs, Minneapolis Community and Technical College; Linda Baer, senior vice chancellor for academic and student affairs; Laura King, vice chancellor finance; Bill Tschida, vice chancellor human resources; Anne Weyandt, chief of staff; and Bob McFarlin, executive director/board secretary Board of Trustees.

    President Shellito summarized three key data collection objectives: current office functions; review of national studies and a survey of the campus leadership: viewpoint of the general public, view from the board as perceived by campus leadership, and the roles and functions as they believe would be viewed by students, faculty and staff. The MnSCU staff, through reviews of staffing patterns, organization charts and interactions with the chancellor, vice chancellors and senior staff developed a comprehensive listing of major functions performed by the system office, and identified 319 positions. The two studies chosen were the California Higher Education Policy Center, 1997, and the State Higher Education Executive Officers Association (SHEEO), 1996.

    The Task Force had eight recommendations:
    • Clearly establish a framework of functions, services and programs that the Board of Trustees intend the system office to perform.
    • Identify those functions not performed by the system office yet expected to be achieved, and delegate responsibility to the campuses along with a set of accountability criteria and expectations.
    • Establish a mechanism that would empower larger colleges to attain a level of autonomy, with appropriate accountability, to perform those functions, services and/or programs that are within their operational capacity.
    • Establish a process for campus level participation and review of key system level operational policies and procedures.
    • Develop a structure and timeframe for continuous improvement for all system office functions both core and service which includes a means for presidential involvement.
    • Adopt a practice of using short-term assignments (up to 1 year) of campus-level subject-matter experts to provide leadership in new initiatives in lieu of hiring permanent system office staff.
    • Monitor the Information Technology development within the MnSCU System to insure maximized service to campuses, increased productivity, and increased data quality.
    • The system office should conduct major initiatives in with lead colleges, in the development of new and emerging areas.

    The report concluded that:

    • Issues discusses within the MnSCU community are also reviewed in national studies.
    • We in MnSCU often discuss as problems or issues what are rather natural tensions.
    • MnSCU still is an emerging system.
    • We should celebrate our commonalties and successes, as opposed to our differences, wins and losses.
    • It is our view that the structure of the MnSCU Board is likely the result of political and historic forces which lead to this as the best structure for public, higher education, at this time, in Minnesota.

    There was a discussion. Chair Vekich commented that after the report is accepted by the Board, and submitted to the Legislature, that we ask the Chancellor to develop a plan for implementation of these recommendations.

    Chancellor Anderson thanked President Shellito and the other members of the Task Force for their work.

    b. Precinct Caucus Schedule Exception
    Chancellor Anderson explained that current law provides that MnSCU campuses must not schedule any activity after 6:00 p.m. on caucus night, and that the campuses are required to make space available for the caucus events. This has not been a problem in the past because usually precinct caucuses are held on the first Tuesday of March in the general election year. This year, the DFL party changed its dates to March 11 and 12, and some MnSCU campuses may have already scheduled events on those dates. The Attorney General's office is not sure whether in fact the law covers the Saturday and Sunday nights, but suggested the Board authorize the presidents to make the determination.

    Trustee Robert Erickson moved that in the event that a major political party holds its precinct caucuses on March 11 or 12, 2000, the Board of Trustees pursuant to Minnesota Statutes §202A.19, subd. 3, authorizes colleges and universities to schedule events after 6:00 p.m. on those dates, if the college or university president determines that cancellation of the event would cause penalty, hardship or significant inconvenience to those affected. Trustee David Erickson seconded and the motion carried without dissent.

    In reply to a question about events scheduled before 6:00 p.m. Counsel Olson replied that the law only prohibits activities after 6:00 p.m., so there are no problems with activities scheduled earlier in the day.

  5. Joint Council of Student Associations
    The following representatives of student associations addressed the Board of Trustees: Ryan Kulikowski, state chair, Minnesota State University Student Association, Francis X. Viggiano, executive director, MSUSA, and Brent Glass, executive director, Minnesota State College Student Association.
  6. MCCFA, IFO, and UTCE: Joint Opportunity to Address the Board
    Dave Abel, president, Inter Faculty Organization, addressed the Board of Trustees.
  7. Consent Agenda
    a) FY 1999 Gifts and Grants Report
    b) Approval to Accept Gifts to Dakota County Technical College, Hennepin Technical College, and Ridgewater College
    c) MnSCU/Board of Trustees Values Statement Employee Evaluation Policy
    d) Program Approval: AAS, Technical Communication; Diploma, Technical Communication; and Certificate, Technical Communication; Alexandria Technical College
    e) Program Approval: AAS, Virtual Reality Applications Technician, Pine Technical College
    f) Defined Contribution Retirement Plan
    g) Review of Foundation Procedures
    Trustee Wafler moved approval of the Consent Agenda. Trustee Luoma seconded and the Consent Agenda was approved without dissent.
  8. Board Standing Committee Reports

    a. Finance/Facilities Policy Committee
    1. FY2000-2005 Capital Budget Modifications
      Committee Vice Chair Dotson commented that the modifications to the FY2000-2005 Capital Budget reprioritized projects. There are projects at Minnesota State University, Mankato and St. Cloud State University, where the foundations of these campuses have been singled out for their successful capital campaigns. Trustee Dotson explained that he will move the motion but that he hoped it would die for lack of a second.

      Committee Vice Chair Dotson moved that the Board of Trustees approve the revised FY2000 Capital Budget Plan as presented (pages 31-34) and contained on Attachment B (p. 36 of the Board report). Trustee Robert Erickson seconded, and the motion carried on a vote of six in favor (Trustees Boss, Brataas, David Erickson, Robert Erickson, Luoma, and Wafler) and four opposed (Trustees Calhoun, Choate, Dotson, and Fritsche).

      Trustee Wafler moved to reconsider the vote on the motion relating to FY2000-2005 Capital Budget Modifications. Trustee Robert Erickson seconded. (Trustees Wafler and Erickson had voted on the prevailing side of the original motion.) The motion to reconsider carried without dissent.


      There was a discussion. Chancellor Anderson clarified the process for prioritizing the Capital Budget modifications. Trustee Dotson commented that he had intended to make a point of supporting the foundations and private sector interests who support the campuses in their capital campaign efforts, but he is willing to change his vote if these items are taken into consider for future capital budget planning. Several Trustees concurred with Trustee Dotson's comment. Trustee Brataas suggested that future considerations also consider the contributions made by local (city) taxpayers.

      Chair Vekich called up the motion to reconsider the vote on the FY2000-2005 Capital Budget Modifications. Trustee Wafler seconded. The original motion carried on a roll call vote of ten in favor (Trustees Boss, Brataas, Choate, Dotson, David Erickson, Robert Erickson, Fritsche, Luoma, Wafler and Chair Vekich) and two opposed (Trustees Calhoun and Splonskowski).
    2. Minnesota West Community and Technical College - Worthington Campus, YMCA Development
      Committee Vice Chair Dotson reported that the committee reviewed a first reading on Minnesota West Community and Technical College - Worthington Campus, YMCA Development. This item is slated for action at the February Board meeting.
    3. Northwest Technical College - Bemidji High School Acquisition
      Committee Vice Chair Dotson reported that the committee reviewed the Northwest Technical College - Bemidji High School acquisition as a first reading. The item is slated for action at the February Board meeting.
    4. Riverland Community and Technical College - Campus Master Plan
      Committee Vice Chair Dotson reported that Riverland Community and Technical College Campus President Gary Rhodes presented the campus master plan.
    5. FY 2001 Operating Budget Including Tuition and Fees
      Committee Chair Robert Erickson moved that the Board of Trustees approve the following:
      1. The initial allocation of state appropriations for Minnesota State Colleges and Universities for FY2001 totaling $491,225,650 as detailed on Attachment G, column a (located in January 2000 Board Packet p. 63), effective July 1, 2000.
      2. The Minnesota State Colleges and Universities proposed tuition recommendations for FY2001 as detailed on Attachments H-1 through H-4 (located in January 2000 Board Packet pp. 69-72).

        The percent increase on resident tuition rates in Attachments H-1 through H-4 represents the maximum amount that can be applied to other tuition rates charged by the institution not impacted by reciprocity agreements such as non-resident and off-campus rates. The tuition increase is effective Fall Semester, 2000. The Board continues the policy of market-driven tuition for customized training, continuing education, distance learning and contract post-secondary enrollment programs.
      3. The Chancellor is delegated the authority to establish FY2001 tuition rates for the Akita Campus consistent with the transition plan recently approved by the Board of Trustees.

      The Chancellor is requested to provide an update and recommend any institutional budget changes after the conclusion of the 2000 legislative session.

      Trustee Boss seconded and the motion carried without dissent.

    6. Student Union Financial Restructuring Plan
      Committee Chair Robert Erickson moved that the Board of Trustees approve the Revenue Fund Student Union Financial Restructuring Plan. Trustee Fritsche seconded and the motion carried without dissent.
    7. Revenue Fund FY 2001 Spending Plan
      Committee Chair Robert Erickson reported that the Revenue Fund FY 2001 Spending Plan was reviewed as a first reading. This item is slated for action at the February Board meeting.
    8. Revenue Fund Reinvestment Strategy
      Committee Chair Robert Erickson reported that the Revenue Fund Reinvestment Strategy was reviewed as a first reading. This item is slated for action at the February Board meeting.
    9. FY 1999 System and Institutional Financial Statements
      Committee Chair Robert Erickson reported that the committee reviewed the FY 1999 System and Institutional Financial Statements.

    b. Joint Meeting of the Finance/Facilities Policy and Educational Policy Committees

    1. Anoka-Hennepin Technical College Site Selection
      Trustee Robert Erickson moved that the Board of Trustees moved that the Board of Trustees approve the following motion: The Chancellor is directed to modify the MnSCU 2000-2005 Capital Budget request consistent with the plan outlined above on page 6 of the hand-out. The Chancellor is requested to return to the Board in June 2000 with a final report of the work of the transition committee. Pursuant to MS 136F.14 the Chancellor shall also report the final disposition of the campus to the legislature.

      The Board recognizes the strong community support for retaining a technical college presence on the Anoka-Hennepin site as well as concerns expressed by area legislators. The Chancellor's recommendation provides for continued use of the site in a manner yet to be determined. However, should the legislature determine a particular course of action, the Board strongly urges that such action provide for appropriate and sufficient capital reinvestment funding to reflect the Board's commitment to long term stewardship of the state's facilities resources. Furthermore, in addition to such action by the State of Minnesota, Anoka County, the City of Anoka and local school districts must be full financial partners with MnSCU with respect to capital and annual operating funding for any plan to continue operations at the Anoka-Hennepin site. Trustee Luoma seconded and the motion carried with two dissenting votes (Trustees David Erickson and Wafler).

    c. Educational Policy Committee

    1. Academic and Student Affairs Update - Future Higher Education Summit
      Committee Vice Chair Luoma reported that Vice Chancellor Baer gave an update on academic and student affairs and an upcoming future higher education summit.
    2. Corporate University Report
      Committee Vice Chair Luoma reported that the committee heard a report by Michael Murphy, associate vice chancellor for strategic partnerships, on the Corporate University.
    3. University Center Rochester/University of Minnesota Plan Update
      Committee Vice Chair Luoma reported that this item was postponed to a future date.
    4. Amendment to MnSCU Policy 3.9 Licensure of Faculty Requiring a License
      Committee Vice Chair Luoma reported that the committee reviewed a first reading of amendments to MnSCU Policy 3.9 Licensure of Faculty Requiring a License. This item is slated for action at the February Board meeting.

    d. Personnel Policy Committee
    Committee Chair Brataas explained that there was a clarification to the minutes of the November 16, 1999 Personnel Policy committee meeting (the minutes were approved at the December 15, 1999 meeting of the committee). The motion for the Chancellor Search read as follows:

    It was moved that the Board of Trustees authorizes the steps necessary to commence the steps necessary to commence a search for MnSCU's next chancellor. Such steps may include, but are not limited to, seeking the services of a professional search firm, creation of a search committee, development of a search process timeline, establishment of a search process budget, and creation of other working groups by the chairman of the board as deemed necessary.

    Committee Chair Brataas explained that the chairman of the board could take all of these actions. There were no objections.

    1. St. Cloud State University President Search
      Committee Chair Brataas reported that Dr. Jan Greenwood, Heidrick & Struggles, presented a report on president searches, in particular the search for a president of St. Cloud State University .
    2. Closed Session - Fish, et al. v. St. Cloud State University, et al., Litigation
      Committee Chair Brataas reported that the committee met in closed session to hear an update on litigation in the matter of Fish, et al. v. St. Cloud State University, et al.

    e. Audit Committee

    1. Year 2000 Final Report
      Committee Chair Boss reported that the committee heard the final report of the Year 2000 Readiness. The campuses, their staff, information technology staff, and central administrative staff did an excellent job of preparing for Year 2000.
    2. Fourth Quarter Audit Follow-up Report
      Committee Chair Boss reported that committee heard the Fourth Quarter Audit Follow-up Report.

  9. Requests by Individuals to Address the Board
    There were no requests by individuals to address the Board.
  10. Other Business
    There was no other business to come before the Board.
  11. Adjournment
    Chair Vekich adjourned the meeting by consensus at 3:56 p.m.
 

Michael Vekich, Chair
Recorded by Inge Chapin

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