December 1997
Board Meeting Minutes

Board of Trustees Meeting Minutes
Wednesday, December 17, 1997
World Trade Center
Saint Paul, Minnesota

Trustees Present: Nancy Brataas, Kathleen Caffey, Archie D. Chelseth, Daniel G. Coborn, Dennis Dotson, David Erickson, Robert Erickson, Christine Fritsche, Stephen L. Maxwell, Gary Mohrenweiser, Denise Stephens, Michael Vekich, James Wafler, Charles W. Williams

Trustees Absent: Michael Nesdahl

1. Call to Order
   Chair Vekich called the meeting to order at 12:10 p.m., and announced that a quorum was present. There were no changes to the agenda.

   Chair Vekich announced that the Board will recess at 1:30 p.m. to attend the Governor's press conference on the third floor, and reconvene afterwards.
   

2. Chair's Report
   a. Approval of November 19, 1997, Board of Trustees Meeting Minutes

   Trustee Wafler moved approval of the November 19, 1997, meeting minutes. Trustee Stephens seconded, and the motion carried without dissent.

   b. Report of Executive Committee Meeting of December 1, 1997

   Chair Vekich reported that the Executive Committee met on December 1, 1997, and reviewed the agenda for the December meeting.

   c. Other

   Chair Vekich reported on the Board of Trustees December 1, 1997, retreat. The Board had input from students, presidents, faculty, and administrators about MnSCU's future. There will be a follow-up retreat on January 5, 1998.
   

3. Trustee Report
   Trustee Robert Erickson, liaison, NorthStar Foundation, reported that the Nellie Stone Johnson Scholarship will be transferred to the Minnesota State University Student Association. Coinciding with the January gifts and grants report, Trustee Robert Erickson proposed that the Board of Trustees host a luncheon for campus presidents and foundation officials during the January meeting.

   There was consensus among the Trustees to host a luncheon. Chair Vekich directed Trustee Robert Erickson to coordinate the planning effort.

   Trustee Maxwell commented that Vice Chancellor, Chief Financial Officer King has recently instituted an awards program for MnSCU's institutions that recognizes superior performance in financial reporting, internal controls and overall contributions to MnSCU's goals. He congratulated Vice Chancellor King and the recipients of the awards.
   

4. Chancellor's Report: Morris J. Anderson
   Chancellor Anderson announced that the community of Bemidji approved bonding for a new high school. The current high school site, across the street from Bemidji State University, will be available and is highly desirable for use by both Bemidji State University and Northwest Technical College in Bemidji. Chancellor Anderson commented that this will be an agenda item at the January Facilities Committee meeting.

   Chancellor Anderson announced that the Governor's announcement will be telecast via satellite to all MnSCU campuses.
   

5. Chancellor's Consent Agenda
   There were no items for the Chancellor's Consent Agenda.
6. Joint Council of Student Associations
   The following representatives of student associations addressed the Board of Trustees: Francis Klinkner, state chair, Minnesota State University Student Association, Joe Jung, legislative liaison, Minnesota Technical College Student Association, Jason Krogerson, president, Minnesota Community College Student Association, Larry Litecky, president, Minnesota Community College Faculty Association, and Russ Stanton, lobbyist, Inter Faculty Organization and MCCFA. Dr. Litecky reviewed the faculty and student associations' joint legislative agenda.
   
7. MCCFA, IFO, and UTCE: Joint Opportunity to Address the Board
   There were no requests to address the Board.
   
8. Board Standing Committee Reports

   a. Facilities Committee
   Committee Chair Robert Erickson reported on a special meeting of the Facilities Committee (December 11, 1997) to hear comments related to capital project administration. Several institutions were represented at the meeting and either presented oral or written comments. A sub-committee of the Facilities Committee will meet on December 23 to prepare recommendations for the January board meeting.

   1. Discussion of 1998 Committee Goals and Objectives
      Committee Chair Robert Erickson reported on the committee's work plan for 1998 which includes the following goals and objectives: complete system wide plan for deferred maintenance, ADA and OSHA remedy; complete system wide standards for master planning; complete project administration/delegation restructuring; and establish reporting and monitoring expectations.

      As a result of the work plan, Vice Chancellor King will draft a five-year plan for campus visits.
      

   b. Joint Fiscal Policy and Facilities Committees

   1. Revenue Fund Rate Restructuring Plan (First Reading)
      Facilities Committee Chair Robert Erickson reported that the revenue fund rate restructuring plan will be presented for action at the January meeting.
      

   c. Fiscal Policy Committee

   1. Discussion of 1998 Committee Goals and Objectives
      Fiscal Policy Committee Chair Chelseth reported on the committee's work plan for 1998 which includes the following goals and objectives: recommend 1999-2003 institutional performance/financial goals; recommend FY2000- FY2001 biennial operating budget; improve financial management of institutions; and recommend MnSCU information system strategy plan.
   2. FY1997 and FY1998 Institutional Budgets Including FYE Update
      Committee Chair Chelseth reported on the FY 1997 and FY1998 institutional budgets which were presented as an information item.
      

   d. Joint Fiscal Policy and Educational Policy Committees

   1. FY1999-FY2001 Allocation Model (First Reading)
      Fiscal Policy Committee Chair Chelseth reported that the FY1999-FY2001 Allocation Model will be presented for action at the January meeting.
   2. MnSCU Fee Policy (First Reading)
      Committee Chair Chelseth reported that the committee reviewed and amended the proposed MnSCU Fee Policy. The policy will be presented for action at the January meeting.
   3. Pell Grant
      Committee Chair Chelseth reported that the committee received a brief staff presentation on recent congressional action to improve the Federal Pell Grant program. In addition, the committee reviewed the Minnesota Higher Education Services Office 1998 legislative initiatives and recommendation related to student financial aid. MnSCU administration will provide a recommendation at the January meeting.

   e. Audit Committee

   1. KPMG peat Marwick, LLP Audit of MnSCU Revenue Fund
      Committee Chair Brataas explained that the KPMG Peat Marwick, LLP audit of MnSCU Revenue Fund was released October 31, 1997, and contained an unqualified opinion.

      Committee Chair Brataas moved the recommended motion that the Board of Trustees accept the KPMG Peat Marwick, LLP audit report and related management letter on the Revenue Fund financial statements for the fiscal year ended June 30, 1997. Trustee Wafler seconded and the motion carried without dissent.

   2. Proposed Amendments to Internal Audit Charter (First Reading)
      Committee Chair Brataas explained that the committee reviewed proposed amendments to the Internal Audit Charter. None of the changes were substantive, and the amendments will be presented for action at the January meeting.
   3. Preliminary Audit Strategies Update
      Committee Chair Brataas reported that the committee reviewed preliminary audit strategies prepared by John Asmussen, the executive director of internal auditing.

      The committee also reviewed a preliminary work plan, an organizational chart for the office of internal auditing, a findings follow-up activity report for the period ending December 16, 1997, products and services provided by internal auditing, and MnSCU policy 7.2 Internal Audit.

   4. Audit Follow-up Process
      Committee Chair Brataas reported that the committee reviewed a proposed follow-up process to inventory findings, with the findings based on the urgency of implementation. The committee also reviewed a summary of follow-up activity for the quarter ending December 3, 1997.

   f. Educational Policy Committee

   1. Policies
      • Program Redesign (Second Reading)

      Committee Chair Fritsche explained that the committee reviewed this policy as a first reading at the November meeting.

      Committee Chair Fritsche moved that the Board of Trustees rescind Technical College carry forward policy 2.1.3.0, Modifications to a Major Program of study and its corresponding procedures and approves policy 3.19, Academic Program Redesign. Trustee Stephens seconded and the motion carried without dissent.

      • Program Replication and Relocation (Second Reading)

      Committee Chair Fritsche explained that the committee reviewed this policy as a first reading at the November meeting.

      Committee Chair Fritsche moved that the Board of Trustees rescind Technical College carry forward policy 2.1.2.0, Transferring a Major Program of study and its corresponding procedures and approves policy 3.20, Academic Program Replication or Relocation. Trustee Robert Erickson seconded and the motion carried without dissent.

   2. Metro Plan Update
      Committee Chair Fritsche reported that Dr. Reinhardt presented a report, entitled, "Trends: Implications and Options." The Chancellor and the Board agreed to revise the Metro Plan timeline as follows: Dr. Reinhardt's full report will be presented at the January meeting, one or two public hearings will be scheduled in either late January or early February, continued discussion on the Metro Plan in March, with final action slated for the April board meeting. The $15 million bond for the Metro Plan will be on the January Facilities Committee agenda.
   3. Program Inventory Report
      Committee Chair Fritsche reported that the committee reviewed a program inventory report as an information item..
   4. Report on Current and Future State of Technical Education in the State of Minnesota
      Committee Chair Fritsche reported that Dawn Hilliard, executive director, Minnesota Technical College Student Association, and Duane A. Rominger, senior planner, State Council on Vocational Technical Education presented a report on the current and future state of technical education in Minnesota.

   g. Personnel Policy Committee

   1. IFO Salary Survey
      Committee Chair David Erickson reported that William Tschida, vice chancellor for human resources, reviewed IFO salary information.

      Comparative data was also supplied by Mr. Abel, executive director, IFO.

   2. Legislation
      Committee Chair David Erickson reported that MnSCU will recommend a repeal statutory language that limits MnSCU to a reimbursement of $100,000 from participating vendors to help cover administrative expenses for the tax sheltered annuity (403b) program.
      
9. Requests by Individuals to Address the Board
   There were no requests to address the Board.
   
10. Other Business
    Chair Vekich announced a recess at 1:20 p.m. so that the assembly can attend the Governor's press conference. The meeting will resume, in closed session, at the conclusion of the press conference.

    Chair Vekich called the meeting to order at 3:07 p.m. He commented that the Governor's proposal to direct $209 million to MnSCU's 36 institutions was a historic occasion, representing a major investment in MnSCU's facilities and infrastructure.

    Chair Vekich called for a motion to go into closed session to discuss the status of the contract negotiations with IFO, MCCFA, and UTCE, and litigation and strategy pursuant to Minnesota Statute §471.705, subd. 1a (1996) (Minnesota Open Meeting Law).

    Trustee David Erickson moved to close the public session of the meeting and convene in closed session at 3:10 p.m. Trustee Maxwell seconded. The motion carried without dissent.

    Trustee Robert Erickson moved to adjourn the closed session of the meeting and convene in open session at 3:45 p.m. Trustee Fritsche seconded and the motion carried without dissent.
    

11. Adjournment
    Trustee David Erickson moved adjournment of the open meeting. Trustee Robert Erickson seconded and the motion to adjourn carried at 3:46 p.m.