June 1997 Board
Meeting Minutes

Board of Trustees Meeting Minutes
Wednesday, June 18, 1997
World Trade Center
Saint Paul, Minnesota

Trustees Present: Nancy Brataas, Kathleen Caffey, Archie D. Chelseth, David Erickson, Robert Erickson, Christine Fritsche, Randall Knudson, Stephen L. Maxwell, Gary Mohrenweiser, Denise Stephens, William Ulland, Michael Vekich

Trustees Absent: Dennis Dotson

1. Call to Order
   Chair William Ulland called the meeting to order at 1:00 p.m. He welcomed the viewers who were watching the live broadcast of the meeting.
   
   
2. Chair's Report
   

   a. Approval of May 21, 1997, Board of Trustees Meeting Minutes
   Trustee Stephens moved approval of the May 21, 1997, meeting minutes. Trustee Maxwell seconded and the motion passed unanimously.
   
   b. Approval of May 22, 1997, Board of Trustees Meeting Minutes
   Trustee David Erickson moved approval of the May 22, 1997, meeting minutes. Trustee Mohrenweiser seconded and the motion passed unanimously.
   
   c. Approval of June 2, 1997, Special Board of Trustees Meeting Minutes
   Trustee Maxwell noted a correction on page six of the minutes.
   
   Trustee Knudson moved approval of the corrected June 2, 1997, meeting minutes. Trustee Fritsche seconded and the motion passed unanimously.
   
   d. Executive Committee Report, June 2, 1997, Meeting Minutes.
   Chair Ulland reported that the Executive Committee met on June 2, 1997, and reviewed the agenda for the June meeting.
   
   e. Announcements
   Chair Ulland announced that William Smoley had resigned from the Board of Trustees effective June 10, 1997. Mr. Smoley had served as chair of the Board Operations Committee, and as a member of several other committees.
   
   Chair Ulland made the following appointments: Trustee Dotson as the Akita liaison; Trustee Stephens as the chair and Trustee Mohrenweiser as vice chair of the Board Operations Committee; and Chris Fritsche as vice chair of the Educational Policy Committee.
   
   Chair Ulland announced that T. J. Wenker, Minnesota State University Student Association, Frank Viggiano, Inver Hills Community College, and Frank Lancorich, St. Cloud State University, were featured in the June 20, 1997, issue of the Chronicle of Higher Education for their testimony on federal financial aid in Washington, D.C.
   
   Chair Ulland announced a change to the meeting agenda. The closed session, scheduled at the conclusion of the board meeting, is canceled.
   
   Chair Ulland presented a plaque of appreciation to Randall W. Knudson, state university student trustee, whose term expires on July 1, 1997. Executive Vice Chancellor and Chief Operating Officer Lee Kerschner, who is leaving MnSCU on July 1, 1997, was presented with a plaque of appreciation. A plaque was also presented to Chancellor Judith S. Eaton, who is leaving MnSCU on June 30, 1997. Chair Ulland thanked Chancellor Eaton for her leadership in establishing a firm foundation for MnSCU=s future.
   
   Chair Ulland announced that Chancellor-designate Morrie Anderson is unable to be present today because of a death in his family. Also not present is Mankato State President Richard Rush, who is attending a meeting in another state.
   
   Chair Ulland announced that there will be no August meeting of the Board. The July 1, 1997, Executive Committee is canceled.
   

3. Trustee Reports: Chris Fritsche, Vice Chair
   

   a. Update on Strategic Plan
   Vice Chair Fritsche reported that the committees working on MnSCU=s Strategic Plan will have reports ready on June 30, 1997. From this date forward, the Strategic Plan will be an agenda item for the Educational Policy Committee.
   

4. Chancellor's Report: Judith Eaton
   Chancellor Eaton acknowledged the help and support she has received in the past two years from the board members, system office staff, presidents, faculty and students. She thanked everyone for their support.
   
   
5. Chancellor's Consent Agenda
   There were no items for the Chancellor's Consent Agenda.
   
   
6. Board Standing Committee Reports
   

   a. Joint Fiscal Policy and Facilities Committee
   

   1. 1998-2003 Capital Budget Recommendations
      Fiscal Policy Committee Chair Chelseth reported that there was a joint meeting of the Fiscal Policy & Facilities Committees on Monday, June 16, 1997, for the purpose of reviewing and establishing priorities on the capital budget for the next three biennium. Prior to the meeting, MnSCU held three regional hearings on the capital budget at Hennepin Technical College in Brooklyn Park on May 27, Itasca Community College in Grand Rapids on May 28, and South Central College in Faribault on June 4. All MnSCU institutions were invited to participate and speak on behalf of their capital needs. Subsequent to the hearings, the chair of the Facilities Committee, Robert Erickson, met with system office staff and developed a priority list of capital projects for the 1998 bonding bill. A report was distributed.
      
      Committee Chair Chelseth moved that the Board of Trustees adopts the MnSCU 1998-2003 strategic capital program as outlined in attachments A-D. Trustee David Erickson seconded.
      
      Trustee Robert Erickson, chair of the Facilities Committee, and Vice Chancellor for Finance Laura King presented an overview of MnSCU=s 1998-2003 capital program. The board=s priorities were categorized as follows: HEAPR requirements; consolidation opportunities; program enhancements; basic conditions requirements; and facility revitalization/replacement. The funding recommendations are: 23 projects for the 1998-1999 biennium for a total of $185.6 million ($91 million of this amount represents HEAPR projects); 13 projects for the 2000-2001 biennium for a total of $154.0 million; and an unspecified number of projects for $141.0 million for the 2002-2003 biennium.
      
      Debt service policies will be reviewed by the Board of Trustees at a later date.
      
      Chair Ulland thanked Trustee Robert Erickson for his work on the capital program. Trustee Robert Erickson thanked Vice Chancellor King, Associate Vice Chancellor Elaine Bellew and staff for their commitment and work on the capital program.
      
      Chair Ulland called the question and the motion carried unanimously.
      
      
   2. Update - System Office Lease (oral report)
      Fiscal Policy Committee Chair Chelseth reported that the committees heard an update on the relocation of the system office to the World Trade Center. The lease will be consummated within the next several weeks and actual relocation will occur mid to late fall of this year.
      
      

   b. Facilities Committee
   Chair Ulland reported that the Facilities Committee did not meet on Tuesday, June 16, 1997, as previously scheduled because of time considerations.
   

   1. North Hennepin Community College Land Purchase
      Committee Chair Robert Erickson moved the approval, on behalf of North Hennepin Community College, of the purchase of eight acres of land, in the amount of $240,000, and the granting of easements requested by Greenbrook, Inc., and the City of Brooklyn Park. Trustee Fritsche seconded and the motion carried.
      
      
   2. Update Library Project/St. Cloud State University (oral report)
      Vice Chancellor King reported that MnSCU currently has three library projects: St. Cloud State University, Winona State University and Bemidji State University. She reported on two of the projects. Winona State University=s library project is a $17.7 million project funded by the 1994 legislature. A tentative ground breaking is scheduled for October 1997, with completion before fall term 1999. The St. Cloud State University library project is a $29.5 million project funded by the 1996 legislative session. The original construction start date of the fall of 1997 has been changed to the spring of 1998, with completion by the spring of 2000.
      

   
   c. Board Operations Committee
   Committee Vice Chair Knudson reported that William Smoley, who used to be the committee chair, resigned from the board on June 10, 1997.
   
   

   1. Amendment to Chapter 1, Policy 1A.1, Appointing Board Members as Ex-Officio members of Committees (second reading)
      Committee Vice Chair Knudson moved approval of an amendment to MnSCU Policy 1A.1 that requires the Board Chair to appoint all non committee members of the board to every committee as ex-officio members. Trustee David Erickson seconded the motion.
      
      The ex-officio committee members are granted the right to fully participate in committee discussions and deliberations but do not have the power to vote or to be included as part of the quorum of the committee.
      
      Trustee Stephens spoke against the motion and the language in the amendment because she felt the time commitment for board members is already extensive. The committee process currently in place works and does not necessitate the presence of other board members. She favored seeking legislation to amend the open meeting law instead. There was a considerable discussion.
      
      Chair Ulland called the question and the motion carried, with Trustee Stephens voting nay.
      
      
   2. E-mail/Computer Communications
      Committee Vice Chair Knudson reported that the committee discussed E-mail/computer communications for trustees.
      
      
   3. Committee Meeting Scheduling
      Committee Vice Chair Knudson reported that the committee reviewed a schedule showing that current committee memberships make it impossible to hold concurrent committee meetings.
      
      
   4. Presidential Search Process
      Committee Vice Chair Knudson reported that this item will be discussed at a future date.
      

   
   d. Personnel Policy Committee
   

   1. Retirement Programs
      Committee Chair David Erickson announced that Joyce Wood, vice chancellor for personnel and Gary Janikowski, system director for personnel, provided an overview of the retirement programs for the system.
      
      
   2. Continuation of Profiles of Employees Covered by Collective Bargaining Agreements
      Committee Chair David Erickson reported that the committee reviewed profiles of employees covered by collective bargaining units.
      
      
   3. Presidential Search Process
      Committee Chair David Erickson reported that there will be a joint meeting with the Board Operations Committee in September to review the presidential search process.
      
      

   e. Audit Committee
   

   1. Update on Search for Internal Audit Director (oral report)
      Committee Chair Brataas announced that MnSCU has received 32 applications for the internal audit director position as of June 16, 1997. The deadline is June 30. A recommendation for the position will be presented for the board's approval at the September meeting.
      
      
   2. Office of the Legislative Auditor's Audit of Statewide Financial Statements and Student Financial Aid
      Vice Chancellor for Finance King reported on the Office of the Legislative Auditor's audit of selected MnSCU financial activities and major federal financial assistance programs for the year 1996. The audit was favorable and concluded that MnSCU's financial activities were fairly presented. In addition, MnSCU administered material federal financial assistance programs in compliance with federal requirements. None of the findings were substantial.
      
      Committee Chair Brataas reported that the committee approved and forwarded to the board a resolution for approval, if appropriate.
      
      Trustee Vekich moved accepting the audit of the Minnesota State Colleges and Universities selected financial activities and major federal financial assistance programs for the fiscal year 1996, with high commendation for the efforts put forth by Vice Chancellor King and the fiscal staff. Trustee Knudson seconded and the motion carried.
      
      
   3. Deloitte & Touche Update (oral report)
      Committee Chair Brataas reported that Trustee Vekich, Vice Chancellor for Finance Laura King, and Deloitte & Touche representatives will meet on the audit project performed by Deloitte & Touche.
      

   
   f. Educational Policy Committee

   1. Program Approval: Library Information Technology - Northwest Technical College and Fergus Falls Community College
      Committee Chair Vekich moved approval of the request by Northwest Technical College and Fergus Falls Community College to offer an Associate in Applied Science in Library and Information Technology. Trustee Fritsche seconded and the motion carried.
      
      
   2. Follow-up MSU-Akita Meeting of May 22, 1997
      Committee Chair Vekich announced that Trustee Dotson will serve as the board's liaison to the Akita campus.
      
      
   3. Educational Policy Committee Vision Statement and Work plan
      Committee Chair Vekich reported that the committee will review the vision statement and work plan at the July meeting.
      
      
   4. Update on Metropolitan Planning
      Committee Chair Vekich provided an update on metropolitan planning, including data gathering, required staff and consultant resources, and timetable. The Blue Ribbon Committee will be appointed by Chancellor-designate Anderson.
      

   
   g. Joint Fiscal Policy and Educational Policy Committees

   1. Biennial Commitment Committee Update
      Educational Policy Committee Chair Vekich reported that the joint committees heard an update from St. Paul Technical College President Dr. Schwichtenberg, who chaired the Biennial Commitment Committee. The committee was charged with developing benchmarks and evaluations. The board had made a commitment that there would not be any campus closings during this biennium.
      
      
   2. FY 1998 College and University Operating Budgets and Tuition Recommendations
      Vice Chancellor for Finance King reported that the joint committees received and reviewed a report on FY 1998 College and University Operating Budgets and Tuition Recommendations. The board will take action on this item in July. This is the first single budget prepared by MnSCU since the merger. It is based on projections for the entire system including assumptions on enrollment, inflation and enrollment mix.
      
      Educational Policy Committee Chair Vekich reported that Vice Chancellor King will provide the following information at the July meeting: report on the consultative process employed for the tuition recommendations; the board=s priorities, e.g., the Electronic Academy and Strategic Plan; recommendation for providing a one-time allocation not to be considered in the base, recommendation for institutions to receive the same allocation for FY98 as in FY97; and development of a policy and recommendation for reserves at both the institutional and system level.
      
      Fiscal Policy Chair Chelseth reported on the public hearing held by the Fiscal Policy & Educational Policy Committees on Wednesday, June 18, 1997. Seventeen individuals testified. Trustee Chelseth offered an apology to Mr. Donald Lannoye, Moorhead State Student Senate, who had asked to testify but was inadvertently omitted from the list. Those testifying voiced concerns about access, especially in rural areas, need for enrollment improvement, reserve policies, and affordability.
      
      

7. Presidential Advisory Committee
   Chair Ulland announced that Dr. Steven Wallace, president, Inver Hills Community College, has accepted a position at Florida Community College at Jacksonville, Florida.
   
   Dr. Ray Cross, president of Northwest Technical Colleges, Dr. James Bensen, president, Bemidji State University, and Ralph Knapp, president, Minnesota West Community and Technical College addressed the board.
   
   
8. Joint Council of Student Associations
   Matt Caron, president, Minnesota Community College Student Association, introduced the incoming board officers: Jason Krogerson will be the new president and Troy Thielen will be vice president. Mr. Caron thanked Trustee Stephens, the community college student representative.
   
   Nicholas Hawkins, Northwest Technical College, Moorhead, and president, Minnesota Technical College Student Association (MTCSA) introduced Rick Harvala, the newly elected legislative liaison. Mr. Hawkins also presented Chancellor Eaton with a resolution of appreciation plaque from the MTCSA Board of Directors.
   
   Francis Klinkner, Mankato State University, and incoming chair, Minnesota State University Student Association, addressed the board. He thanked President Sweetland, Southwest State University, Trustee Fritsche and Representative Seifert for attending MSUSA's last conference at Southwest State University.
   
   Frank Viggiano, executive director, Minnesota State University Student Association (MSUSA) addressed the board. Mr. Viggiano thanked Chancellor Eaton and Trustee Knudson, MSUSA's first trustee since the merger.
   
   
9. MCCFA, IFO, and UTCE: Joint Opportunity to Address the Board
   Larry Litecky, president, Minnesota Community College Faculty Association (MCCFA) addressed the board.
   
   Dave Abel, president, Inter-Faculty Organization, introduced Gunnar Wikstrom, director of communications, IFO, who distributed and reviewed a memorandum related to proposed federal tax law legislation. Mr. Wikstrom urged the board to adopt a resolution in opposition of the proposed legislation. Chair Ulland referred the matter to the Personnel Policy Committee for a recommendation. Mr. Abel addressed the board.
   
   
10. Requests by Individuals to Address the Board
    There were no requests by individuals to address the Board.
    
    
11. Other Business
    There was no other business that was brought forth for the Board to discuss.
    
    
12. Adjournment
    Trustee Mohrenweiser moved adjournment of the meeting at 3:35 p.m. Trustee Vekich seconded and the motion passed.

William Ulland, Chair - Board of Trustees
Recorded by Inge Chapin

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