July 2003 Board Meeting Minutes

Wednesday, July 16, 2003
World Trade Center
St. Paul, Minnesota

Trustees Present: Mary Choate, Chair, Will Antell, Andrew Boss, Daniel Coborn, Cheryl Dickson, Ivan Dusek, Robert Hoffman, Vincent Ijioma, Jim Luoma, Lew Moran, David Paskach, Michael Redlinger, Ann Curme Shaw and Shaun Williams

Absent: Clarence Hightower


  1. Call to Order
    Chair Mary Choate called the meeting to order at 1:30 p.m. and reported that a quorum was present. There were no changes to the agenda.

  2. Chair's Report
    a. Minutes of Board of Trustees Meeting of June 18, 2003
    As there were no corrections to the minutes, Chair Choate announced that the minutes stand approved as written.

    b. Presentation of American Heart Association Awards
    Chair Choate introduced Ms. Rachel Druker, Regional Manager of the Minnesota and Dakota Regions American Heart Association. Ms. Druker presented an award to the Board of Trustees and Chancellor McCormick for the Minnesota State Colleges and Universities' Fire/Emergency Medical Services Safety Center. The award recognizes the Fire/EMS Safety Center as the leading training center in the country in terms of the number of people trained.

    Ms. Druker presented the first Morris T. Miller Award of Excellence to Joseph Grafft of the Minnesota State Colleges and Universities' Community Training Center (CTC). Mr. Miller was a registered nurse, and a leader in the growth of many American Heart Association programs. Mr. Grafft had a close working relationship with Mr. Miller, and he developed the Minnesota State Colleges and Universities' CTC which has become the largest of the nation's 3,000 CTC's.

    c. Election of Officers

    Chair Choate explained the election process. In addition to the slate of candidates, nominations can be made from the floor. Nominations do not require a second. The three offices up for election were chair, vice chair and treasurer.

    Chair
    Chair Choate reported that the candidate for the position of chair is Vice Chair Jim Luoma. Chair Choate called for any other nominations. There were none. Chair Choate declared that the nominations were closed.

    Chair Choate moved to elect Jim Luoma as chair, effective August 1. The motion carried unanimously, and Chair Choate declared that Jim Luoma was elected as chair.

    Vice Chair
    Chair Choate announced two candidates for the position of vice chair: Trustees Robert Hoffman and Shaun Williams. Chair Choate called for any other nominations. There were none. Chair Choate declared that the nominations were closed.

    Trustee Andrew Boss moved that the votes be recorded by paper ballot. Vice Chair Luoma seconded and the motion carried unanimously. Board Secretary Inge Chapin recorded the ballots and announced to the Board that Robert Hoffman was elected for the position of vice chair, effective August 1.

    Treasurer
    Chair Choate announced two candidates for the position of treasurer: Trustees Vincent Ijioma and Ann Curme Shaw. Chair Choate called for any other nominations. There were none. Chair Choate declared that the nominations were closed.

    Trustee Andrew Boss moved that the votes be recorded by paper ballot. Vice Chair Luoma seconded and the motion carried unanimously. Board Secretary Inge Chapin recorded the ballots and announced to the Board that Ann Curme Shaw was elected for the position of treasurer, effective August 1.

    Trustee Robert Hoffman commended the current officers for their contributions throughout the past year.

    d. Proposed FY 2004 Meeting Calendar (Second Reading)
    Chair Choate announced the second reading of the Proposed FY 2004 Meeting Calendar.

    Trustee Boss moved that the Board of Trustees adopt the Fiscal Year 2004 Meeting Calendar as presented. Trustee Michael Redlinger seconded and the motion carried with two nays, (Trustees Will Antell and Shaun Williams).

    e. Draft Minutes of Executive Committee Meeting of June 4, 2003
    Chair Choate reported that the minutes of the Executive Committee meeting of June 4, 2003, stand approved as written.

  3. Trustee Reports
    Trustee Michael Redlinger thanked the Board members for their commitment and dedication. He also thanked board staff: Inge Chapin, Patty McCann and Laura Torgerud, and Chancellor McCormick and the Office of the Chancellor's staff.

    Chair Choate and Trustee Will Antell commended Trustee Redlinger for his contributions and dedication over the past two years.

    Trustee Cheryl Dickson reported that she attended the Association of Community College Trustees Leadership Conference in San Francisco on June 25-28, 2003. Also attending the conference were Chair Choate, Trustee Ivan Dusek and Board Secretary Inge Chapin. Trustee Dickson added that she is very proud that Chair Mary Choate is on the Board of Directors for the Association of Community College Trustees and that Trustee Ivan Dusek is seeking election to the Diversity Committee of the Association of Community College Trustees.

    Trustee Dusek recognized and thanked Trustee Redlinger for his dedication and wished him well.

    Trustee Vincent Ijioma reported his attendance at Metropolitan State University for the Student Senate Inauguration and Appreciation Dinner on June 27, 2003. Trustee Ijioma expressed that he was very glad to have had the opportunity to work with Trustee Redlinger.

  4. Chancellor's Comments
    Chancellor McCormick acknowledged and thanked Trustee Redlinger for his dedication to the Board. He also thanked Chair Choate and the Board for their service and leadership. Chancellor McCormick thanked the constituency leaders, the presidents and the Office of the Chancellor staff for their support and assistance in the work of Minnesota State Colleges and Universities, noting their commitment to the people of Minnesota.

    Chancellor McCormick commented on the tuition hearings that were held on June 23, 2003, at Minneapolis Community and Technical College and July 9, 2003, at Central Lakes College in Brainerd. He thanked all who attended and the hosts at the campuses for their hospitality.

    Chancellor McCormick congratulated the newly elected leadership of the Board. He added that the presidents also had elected new leadership. He welcomed President Ken Peeders as chair and President Anne Weyandt as vice chair of the presidents. President Peeders now will co-chair the Leadership Council. The Chancellor also recognized new Leadership Council committee co-chairs: Presidents Jon Quistgaard, Academic and Student Affairs; Ann Wynia, Finance and Administration; Joseph Sertich, Advancement; Richard Davenport, Human Resources; and Joseph Birmingham, Technology.

    Chancellor McCormick thanked Presidents Wilson Bradshaw, Kathleen Nelson and Thomas Horak for their work as past chairs, and Cheryl Frank, Jim Johnson, Darrell Krueger, Roy Saigo and Robert Musgrove as past committee co-chairs.

    Chancellor's Quarterly Report
    Chancellor McCormick reviewed the final quarterly report which is also the annual summary. Chancellor McCormick stated that the focus remained on the strategic plan with the five priorities - Increase Access and Opportunity; Increase Support; Expand High Quality Learning Programs and Services; Strengthen Community Development Economic Vitality; and Fully Integrating the System.

    Chancellor McCormick recognized Josephine Reed Taylor, Senior Vice President of Academic and Student Affairs at Minneapolis Community and Technical College, for being named chair of the network executive board for the American Council of Education.

    Chancellor McCormick recognized Dr. William Lowe, who was present at the Board meeting, as the new Provost and Vice President for Academic Affairs at Metropolitan State University.

  5. Joint Council of Student Associations
    The following representatives of student associations addressed the Board of Trustees: Jeff Thompson, Vice President, Minnesota State College Student Association (MSCSA), and Sam Edmunds, State Chair, Minnesota State University Student Association (MSUSA).

  6. Minnesota State Colleges and Universities' Bargaining Units
    The following representatives of the bargaining units addressed the Board of Trustees: Jeanne Cornish, President, Minnesota State University Association of Administrative and Service Faculty (MSUAASF), and Jim Pehler, President, Inter Faculty Organization (IFO).

  7. Consent Agenda
    a.Mission Approval: Fond du Lac Tribal and Community College
    b. Bemidji State University Real Property Acquisition
    c. Gift of Real Property, Minnesota State Community and Technical College - Wadena
    d. Minnesota West Community and Technical College Student Housing Proposal


    Trustee Will Antell moved approval of the Consent Agenda. Trustee Andrew Boss seconded and the Consent Agenda was approved unanimously.

  8. Board Standing Committee Reports
    a. Educational Policy Committee, Will Antell, Chair
    1. Academic and Student Affairs Update
      Committee Chair Will Antell reported that Senior Vice Chancellor Linda Baer gave an update on the Academic and Student Affairs division and that Dr. Don Norris, author of Tough Times, Big Choices: Getting Value Out of Technology, will be present at the September Board meeting for dialogue and discussion.
    2. Northwest Technical College Reorganization Update
      Committee Chair Antell reported the committee received an update on the reorganization of Northwest Technical College. Committee Chair Antell added that progress has been made in several areas, and the committee was pleased with the report.
    3. Metro Consortium Progress Report
      Committee Chair Antell reported that the committee received a progress report on the Metro Alliance institutions. The plans for the current year identified four areas of focus: meeting the needs of underserved populations; improving linkages with P-12 schools; creating career pathways; and coordinating technology infrastructure.
    4. Integrated Campus Planning
      Committee Chair Antell reported the committee had a discussion on the plans to integrate academic, facility, finance and technology planning for future-oriented presentations.
    5. Post-Secondary Enrollment Options Program
      Update Committee Chair Antell reported that committee received an updated report on the post-secondary enrollment options program from Senior Vice Chancellor Baer. The committee had a lengthy discussion and Committee Chair Antell stated there will be more information at future meetings.

    b. Human Resources Policy Committee, Ivan Dusek, Chair
    1. Proposed Amendment to Policy 1A.3 System Administration, Chancellor (First Reading)
      Committee Chair Ivan Dusek reported that the committee received a recommendation from the Ad Hoc Assessment Committee to amend Policy 1A.3 System Administration, Chancellor. The proposed amendment clarifies that the Chair of the Board of Trustees names the members of the Ad Hoc Assessment Committee and that the Executive Director of the Office of Internal Audit will compile the assessment surveys. This will be an action item at the September meeting.
    2. Campus Faculty, Staff and Students of Color Report
      Committee Chair Dusek reported that the committee received a report and presentation from Associate Vice Chancellor Dolores Fridge, Equal Opportunity and Diversity, on the 2003 Demographic Report. The report contains data collected from campuses on faculty, staff and students of color. The report is available on the Minnesota State Colleges and Universities web site at www.hr.mnscu.edu.
    3. Report on Closed Session: Bargaining Update Pursuant to Minnesota Statute � 13D.03 (Minnesota Open Meeting Law) (2000)
      Committee Chair Dusek reported that the Board of Trustees met in a closed session to receive an update on the negotiations with the various bargaining units.

    c. Finance/Facilities Policy Committee, Andrew Boss, Chair
    1. *FY 2004-2005 Operating Budget Including Tuition and Fees (Second Reading)
      Committee Chair Andrew Boss moved that the Board of Trustees adopt the following motion:

      1. Adopt the annual total operating budget and general fund budget for FY 2004 and FY 2005 in Tables 3 and 5 (attached).

      2. Approve the proposed tuition structure recommendations for FY 2004 and FY 2005 as detailed on Attachment A-1, A-2, A-3 and A-4. The percentage impact of resident tuition rates represents the maximum amount that can be applied to other tuition rates charged by the institution not impacted by reciprocity agreements such as nonresident and off-campus rates.

        The tuition increase is effective Summer Session or Fall Semester, 2003 at the discretion of the president. The Chancellor is authorized to approve tuition structures for new courses or programs proposed after Board passage and is requested to provide the Board with a summary of any approvals when the next tuition recommendations are presented to the Board. The Board continues the policy of market-driven tuition for closed enrollment courses, customized training, non-credit instruction, continuing education, distance learning and contract postsecondary enrollment option programs.

        Approving a FY 2005 tuition rate is the initial phase of a two year consultation process. Phase one of the consultation process is the approval of the FY 2005 tuition rates, which will allow students, families and institutions to make informed financial decisions two years into the future. Phase two of the consultation process will occur in the upcoming year as colleges and universities engage in a comprehensive student consultation process for the FY 2005 budget. Consistent with their normal budget process, colleges and universities, along with their campus constituents, will have the opportunity to review all aspects of the institutional budget, including tuition level, for FY 2005. The colleges and universities will be able to return to the Chancellor and the Board of Trustees in Spring 2004 if adjustments are necessary in light of changing budget parameters, such as compensation costs, emerging campus priorities and the feedback from the comprehensive student consultation.

      3. Concurs with the Chancellor's direction on the reserves policy -- the Chancellor's approval is required for an institution's reserve to fall below 3% of revenue. The Chancellor will report to the Board on the conditions of the reserve balances.

      4. Adopt the changes of the fee maximums as detailed in Attachment B.

        Trustee Robert Hoffman seconded the motion.

        Trustee Shaun Williams moved to amend the motion to adopt FY 2004 only. Trustee David Paskach seconded. Chair Choate called for a roll call vote on the proposed amendment to the motion. The proposed amendment to the original motion failed on a roll call vote with five in favor (Trustees Will Antell, Daniel Coborn, Vincent Ijioma, David Paskach and Shaun Williams) and eight opposed (Trustees Andrew Boss, Cheryl Dickson, Ivan Dusek, Robert Hoffman, Jim Luoma, Lew Moran, Michael Redlinger and Ann Curme Shaw).


        Trustee Williams spoke against the motion, voicing his concern for the students. He stated that enrollment will not continue to increase as it has; financial aid will not increase to match the rise in tuition; classroom sizes are increasing while programs and services are decreasing; and accessibility will become more difficult for the underrepresented population.

        Chair Choate called for a roll call vote on the original motion. The motion carried with eight in favor (Trustees Boss, Dickson, Dusek, Hoffman, Luoma, Moran, Redlinger and Curme Shaw), four opposed (Trustees Antell, Coborn, Paskach and Williams) and one abstention (Trustee Ijioma).

    2. *Gift of Real Property - Fond du Lac Tribal and Community College
      Committee Chair Andrew Boss moved that the Board of Trustees is pleased to accept the modular building gift from the Fond du Lac Band of Ojibwe, subject to due diligence review, including but not limited to environmental, health and safety and building codes for its intended use. The Board gratefully acknowledges the generous gift from the Fond du Lac Band of Ojibwe and the Fond du Lac Tribal and Community College Foundation Board. Trustee Dusek seconded and the motion carried unanimously.

    d. Advancement Committee, Robert Hoffman, Chair
    1. 2003-2004 Marketing Plan
      Committee Chair Robert Hoffman reported that the committee received a presentation from Associate Vice Chancellor Linda Kohl on the marketing plan for 2003-2004. Four priorities were outlined for the coming year, along with ongoing initiatives.
    2. Chamber/Business Plan
      Committee Chair Hoffman reported that the committee heard a report from John Ostrem, Deputy to the Chancellor, and Associate Vice Chancellor Kohl on the Chamber/Business Plan to visit with local Chambers of Commerce and business leaders about the value of public higher education in their communities.

    e. Technology Committee, Lew Moran, Chair
    1. *Policy 5.22 Acceptable Use of Computers and Information Technology Resources Policy (Second Reading)
      Committee Chair Lew Moran moved that the Board of Trustees adopts proposed Policy 5.22 Acceptable Use of Computers and Information Technology Resources Policy. Trustee Robert Hoffman seconded and the motion carried.
    2. Minnesota State Colleges and Universities Information Technology Update
      Committee Chair Moran reported that the committee received an update from Ken Niemi, Vice Chancellor for Information Technology, on the system-wide information technology issues and projects.

  9. Requests by Individuals to Address the Board
    There were no requests to address the Board.

  10. Other Business
    Chair Mary Choate expressed her gratitude for the opportunity to serve as Chair of the Board of Trustees. She thanked Chancellor McCormick for his support, encouragement and guidance during her term. Chair Choate thanked the Office of the Chancellor staff, the presidents and the board staff: Inge Chapin, Patty McCann and Laura Torgerud for their support.

  11. Adjournment
    Chair Choate adjourned the meeting by consensus at 3:10 p.m.

Recorded by Ingeborg K. Chapin
Board Secretary