Wednesday, June 18, 2003
World Trade Center
St. Paul, Minnesota

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

Absent: Will Antell

  1. Call to Order
    Chair Mary Choate called the meeting to order at 1:50 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 May 21, 2003
    As there were no corrections to the minutes, Chair Choate announced that the minutes stand approved as written.

    b. Report of the Executive Committee of June 4, 2003
    Chair Choate reported that the Executive Committee met on June 4. No action was taken. The committee reviewed the Board Operating Budget of $252,534, a reduction of ten percent over FY 2003. The committee also reviewed a draft meeting calendar for FY 2004, and had a discussion regarding consideration of a tuition waiver for student trustees.

    Chancellor McCormick and Manuel L�pez, Associate Vice Chancellor for Continuous Improvement, reviewed the proposed work plan for FY 2004. The committee heard a report from President Wilson Bradshaw on the Leadership Council, including the announcement of new officers effective July 1. The new officers are President Ken Peeders, who will co-chair the Council with Chancellor McCormick, and newly elected vice-chair, President Anne Weyandt. The committee also reviewed the June Board meeting agenda.

    c. Proposed FY 2004 Meeting Calendar

    Chair Choate reviewed the proposed meeting calendar. There were no changes to the calendar which will be acted on at the July annual meeting. Chair Choate reported that there will not be a meeting of the Executive Committee on July 2, 2003.

    d. Declarations of Candidacy for Board Officers
    Chair Choate reported that the election of officers will be held at the annual meeting on July 16. Declarations received to date are:
    Chair - Trustee Jim Luoma
    Vice Chair - Trustee Robert Hoffman
    Treasurer - Trustees Vincent Ijioma and Ann Curme Shaw
    Chair Choate announced that the Board staff will mail a list of candidates on June 20.

    e. Campus Good News
    Chair Choate recognized the winners of the Minnesota Book Awards, which were announced recently by the Minnesota Humanities Commission. The winners include several people associated with Minnesota State Colleges and Universities campuses. Ms. Allison McGee, author of Countdown to Kindergarten, assistant professor at Metropolitan State University; Ms. Jan Schultz, author of Firestorm, an alumna of Minnesota State University, Mankato; and Mr. Tom Heffron, the designer for the book entitled Daisy Air Rifles and BB Guns: The First 100 Years. Mr. Heffron attended Hennepin Technical College. Dr. Mary Riebe, director of Metropolitan State University's Center for Women Entrepreneurs and Entrepreneurship Education, has been named one of the "25 Women to Watch in the Twin Cities", which will be featured in the July 25 edition of The Business Journal. Chair Choate reported that Alexandria Technical College will host the Midwest Conference of Packaging Machine Builders in the Center for Automation and Motion Control on July 11.

    f. Other
    Chair Choate announced that Trustee Michael Redlinger will remain on the Board beyond his term ending June 30. Trustees serve on the Board until their successors are appointed by the Governor.

    Chair Choate and Chancellor McCormick presented State of Minnesota plaques to President Colleen Thompson Michels, Ridgewater College, and Interim President James Davis, Riverland Community College in recognition of their upcoming retirement and significant contributions made to Minnesota State Colleges and Universities.

  3. Trustee Reports
    Trustee Cheryl Dickson reported that she and Trustee Ann Curme Shaw attended the Macalaster Conference on Higher Education Governance in Minneapolis, funded by the Mellon Foundation.

    Trustee Bob Hoffman reported that he attended the AQUIP meetings in Chicago with President Don Suppala and staff from Rochester Community and Technical College.

  4. Chancellor's Comments
    Chancellor McCormick acknowledged and welcomed the Board of Trustees, presidents, constituency leaders and others present at the meeting.

    Chancellor McCormick acknowledged and welcomed Dr. Douglas Allen. Dr. Allen will be recommended by Chancellor McCormick to the Board of Trustees for the position of president of Ridgewater College during the report of the Human Resources Committee.

    Chancellor McCormick stated that he was present at Southwest State University in Marshall on June 12, for the signing of the bonding bill by Governor Pawlenty. He added that each project will make a significant difference in the ability to serve the students and to protect and enhance the investment in the system's facilities.

    * Minnesota State Colleges and Universities Annual Work Plan
    Chancellor McCormick presented the annual 2003-2004 Work Plan noting that it reflects the work and involvement of many, including the Trustees, presidents and staff. Chancellor McCormick will present the progress of the current Work Plan accomplishments at the July meeting.

    Chancellor McCormick stated the importance of the existing priorities and that there are four new priorities established for the coming year. The new priorities include:
    1. An expansion by college and university presidents of private (and other external) fundraising efforts.
    2. A more coordinated and increased access to courses, full degree programs and student support services offered through emerging technologies.
    3. An examination and clarification of the system's organizational structure aimed at improving the efficiency and effectiveness of programs and services.
    4. Establishment of a system leadership development program to identify and train future institutional and system leaders.

    Vice Chair Jim Luoma moved that the Board of Trustees adopt the Work Plan. Trustee Ivan Dusek seconded and the motion carried unanimously.

  5. Joint Council of Student Associations
    The following representatives of student associations addressed the Board of Trustees: Yorgun Marcel, State Chair, Minnesota State University Student Association (MSUSA), and Derek Hudyma, Vice President, Minnesota State College Student Association (MSCSA).

  6. Minnesota State Colleges and Universities' Bargaining Units
    The following representatives of the bargaining units addressed the Board of Trustees: Karen Foreman, President, American Federation of State, County and Municipal Employees (AFSCME), Minnesota State Colleges and Universities Policy Committee, and Jim Pehler, President, Inter Faculty Organization (IFO).
  7. Consent Agenda
    a. FY 2004-2009 Capital Budget Request
    b. Winona State University Real Property Acquisition
    c. FY 2004 Audit Plan
    d. Northwest Technical College/Fergus Falls Community College Request for Name Change
    e. Mission Approval: Itasca Community College

    Trustee Michael Redlinger moved approval of the Consent Agenda. Trustee Robert Hoffman seconded and the Consent Agenda was approved unanimously.

  8. Board Standing Committee Reports
    a. Finance/Facilities Policy Committee, Andrew Boss, Chair
    1. *Amendments to Board Policies Chapter 5, Administration; Chapter 6, Facilities Management; and Chapter 7, General Financial Provisions (Second Reading)
      Committee Chair Andrew Boss moved that the Board of Trustees approves the proposed amendments in Part 1 of the report relating to policy changes in Board Policy 5.11, Tuition and Fees, and Board Policy 6.5, Capital Program Planning Including Construction Delegation and Facilities Construction Contracts. In addition, shown in Part 2 of the report, the Board of Trustees approves the proposed housekeeping changes to chapters 5-7 of Board policies but does not approve the changes to Policy 6.4. Trustee Hoffman seconded and the motion carried unanimously.
    2. *Proposed Possession or Carry of Firearms Policy 5.21 (Second Reading)
      Committee Chair Boss moved that the Board of Trustees adopts the proposed policy 5.21, Possession or Carry of Firearms. Trustee Ann Curme Shaw seconded and the motion carried unanimously.
    3. FY 2004-2005 Operating Budget Including Tuition and Fees (First Reading)
      Committee Chair Boss reported that the committee received a presentation on the financial outlook, along with the institutional operating budgets and tuition requests for FY 2004-2005 from Vice Chancellor-Chief Financial Officer Laura King and her staff.

    b. Audit Committee, Daniel Coborn, Chair
    1. *System-Level Accountability Framework
      Committee Chair Daniel Coborn moved that the Board of Trustees approves the design of the system-level accountability framework as contained in the proposal dated June 17, 2003, and requests the Chancellor to assign responsibilities and resources to implement the framework in fiscal year 2004. Trustee Vincent Ijioma seconded and the motion carried unanimously.

    c. Technology Committee, Lew Moran, Chair
    1. Policy 5.22 Acceptable Use of Computers and Information Technology Resources Policy (First Reading)
      Committee Chair Lew Moran reported that the committee reviewed the proposed Policy 5.22 Acceptable Use of Computer and Information Technology Resources. This will be an action item at the July meeting.
    2. Campus Showcase: St. Cloud State University Spatial Analysis Research Center Committee Chair Moran reported that the committee received a presentation on the Spatial Analysis Research Center at St. Cloud State University. The presentation showcased the developing technology used for Geographical Information Systems (GIS).

    d. Advancement Committee, Robert Hoffman, Chair
    1. State and Federal Legislative Update
      Committee Chair Robert Hoffman reported that the committee received an update from John Ostrem, Deputy to the Chancellor, and Mary Jacquart, Director of Federal Relations, on the state and federal legislative issues.

    e. Educational Policy Committee, Will Antell , Chair
    1. Academic and Student Affairs Update
      Committee Vice Chair Jim Luoma reported that the committee heard an update on Academic and Student Affairs from Vice Chancellor Linda Baer.
    2. Post-Secondary Enrollment Options Program Update Committee Vice Chair Luoma reported that the committee had a discussion on Post-Secondary Enrollment Options and that this will be continued at the July meeting.
    3. Sabbatical Report Committee Vice Chair Luoma reported that due to time constraints the Sabbatical Report has been postponed to a future meeting.

    f. Human Resources Policy Committee, Ivan Dusek, Chair
    1. Closed Session: Chancellor Assessment Pursuant to Minnesota Statute � 13D.05, subd. 3 (Minnesota Open Meeting Law) (2000)
      Committee Chair Ivan Dusek reported that the Ad Hoc Assessment Committee met in closed session on Chancellor McCormick's Assessment. Committee Chair Dusek called upon Vice Chair Luoma, Chair of the Ad Hoc Assessment Committee, to report on the results and following motion.
    2. *Summary of Chancellor Assessment
      The Chancellor's assessment process was expanded from last year. This year, in addition to board members, surveys also were sent to cabinet members, presidents, and statewide union and student representatives. The public also was afforded an opportunity to submit comments on-line. The participation rate by evaluators was excellent. Overall, 75 percent of the surveys were completed. This level of participation demonstrated the widespread recognition of the importance of the role of the Chancellor and the belief that the assessment process will yield positive results for the system.

      The results were an extraordinarily positive assessment of Chancellor McCormick's performance, with an overall rating of 4.76 and a Trustee rating of 4.79 on a 5.0 scale.

      The survey solicited ratings about 32 specific attributes. By all measures, evaluators rated the Chancellor very high on all attributes. In addition, most of the 179 written comments praised the Chancellor's performance. Some particularly noteworthy areas include:
      • Educational and professional leadership;
      • Ability to provide inspiration and motivation;
      • Effectively represents the system and institutions to the public; and
      • Union and student representatives as a group were particularly impressed with the personal characteristics of the Chancellor (rating 6 of 8 personal attributes as a perfect 5.0).

    3. Areas identified for continuing emphasis include:
      • The continuing refinement of the planning process;
      • The development of accountability measures for performance and outcome-based results; and
      • The need for even greater attention to diversity issues.

      The Board of Trustees concluded that the performance of Chancellor James H. McCormick continues to meet the Board's extremely high expectations. Although the Chancellor's excellent performance is deserving of a corresponding raise, given the financial straits of the system and the upcoming budgetary decisions that the system faces, the Board has determined that it is not in a position to offer a salary increase for the Chancellor at this time.

      Vice Chair Luoma moved that the Board of Trustees authorizes the Board Chair to renegotiate the Employment Agreement with Chancellor James H. McCormick to: 1) Extend his contract term through June 30, 2007.
      2) Provide for payment of previously agreed upon severance under Paragraph 8.D of the Employment Agreement, in the event of the death or disability of the Chancellor before the end of the term of the Agreement.
      Trustee Ivan Dusek seconded and the motion carried unanimously.

      Chancellor McCormick thanked the Board, presidents, staff and constituencies for participating in the process. He added that he plans to take into consideration all of the comments to do even better in the future. Chancellor McCormick emphasized his thanks to his staff, in particular to Janice Fitzgerald, Chief of Staff, and Colleen Thompson, Executive Assistant. Chair Mary Choate thanked Chancellor McCormick for his willingness to serve an additional two years during these challenging times.

    4. *Appointment of President of Ridgewater College
      Committee Chair Dusek thanked out-going president, Colleen Thompson Michels, for her outstanding service as president of Ridgewater College.

      With the announcement of Colleen Thompson Michel's retirement as president of Ridgewater College, a nationwide search was conducted with the assistance of an executive search firm. Anne Weyandt, president of Anoka Technical College, chaired the search committee. Chancellor McCormick, along with members of the Board of Trustees and Cabinet from the Office of the Chancellor, interviewed two finalists. As a result of this process, Chancellor McCormick is recommending Dr. Douglas W. Allen for the presidency of Ridgewater College.

      Dr. Allen has been at Anoka-Ramsey Community College since 1997, first serving as dean of academic affairs at the Cambridge campus. He became vice president of education services in 2000. Previously, he served as associate dean of Mount Marty College Watertown, South Dakota, and was an English instructor at North Dakota State University.

      Dr. Allen received his doctorate in educational leadership from the University of St. Thomas and holds a master's degree in English and a bachelor's degree in sociology from South Dakota State University.

      Chancellor McCormick announced that he is pleased to recommend Dr. Allen for the presidency of Ridgewater College. Committee Chair Dusek, Trustee David Paskach and President Pat Johns all spoke in favor of the recommendation of Dr. Allen as president of Ridgewater College.

      Committee Chair Dusek moved that the Board of Trustees, upon the recommendation of Chancellor McCormick, appoints Dr. Douglas W. Allen as president of Ridgewater College effective July 28, 2003, subject to the completion of an employment contract, which the Board authorizes the Chancellor to negotiate in consultation with the Chair of the Board and Chair of the Human Resources Policy Committee in accordance with the terms and conditions of the Personnel Plan for Minnesota State Colleges and Universities Administrators. Chancellor McCormick is authorized to extend the contract of President Thompson Michels through July 27, 2003. Trustee Ijioma seconded and the motion carried unanimously.

      Dr. Allen thanked the Board of Trustees and Chancellor McCormick, stating that he is honored to accept the position of president of Ridgewater College. He added that he is looking forward to the challenges ahead and working with the Board and Chancellor McCormick.
    5. Closed Session: Bargaining Update
      There was a Closed Session to hear a bargaining update during the Human Resources Committee.
  9. Requests by Individuals to Address the Board
    There were no requests to address the Board.
  10. Other Business
    Trustee Shaun Williams declared his candidacy for the position of Vice Chair of the Board of Trustees.

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

Recorded by Ingeborg K. Chapin
Board Secretary