May 1997 Board
Meeting Minutes

Board of Trustees Meeting Minutes
Wednesday, May 21, 1997
Radisson Inn
Saint Paul, Minnesota

Trustees Present: Nancy Brataas, David Erickson, Robert Erickson, Christine Fritsche, Randall Knudson, Stephen L. Maxwell, Gary Mohrenweiser William Smoley, Denise Stephens, Michael Vekich

Trustees Absent: Kathleen Caffey, Archie D. Chelseth, Dennis Dotson, William Ulland

1. Call to Order/Announcement
   Vice Chair Fritsche called the meeting to order at 9:05 a.m., and announced that chair William Ulland was unable to be present because of a business conflict.
   
   Vice Chair Fritsche announced one agenda change, Chancellor's Report, item b., Recommendations for College and University President Appointments, will be moved to this afternoon, following a closed session. Vice Chair Fritsche announced that this item will be heard no earlier than 1:30 p.m.
   
   Vice Chair Fritsche welcomed Chancellor-elect Morrie Anderson.
   
   
2. Chair's Report
   

   a. Approval of April 23, 1997, Board of Trustees meeting minutes
   Trustee Vekich moved approval of the April 23, 1997, meeting minutes. Trustee Robert Erickson seconded and the motion passed unanimously.
   
   b. Executive Committee Report, May 1, 1997
   Vice Chair Fritsche announced that the Executive Committee met on May 1, 1997, and a copy of the minutes are included in the Board packet.
   
   c. Consideration of Board Calendar, June & July 1997
   Vice Chair Fritsche explained that the Board of Trustees will meet on June 17 & 18, 1997, and that there is a need to meet in July.
   
   Trustee Vekich moved approval of the June 17-18, 1997, and July 15 and 16, 1997, meeting dates. Trustee Stephens seconded and the motion passed unanimously.
   
   Vice Chair Fritsche announced that the MnSCU Board of Trustees will be meeting on Thursday, May 22, 1997, with representatives from Akita, Japan. Agendas of the meeting were distributed. In addition, the next Executive Committee meeting will be Monday, June 2, 1997.
   
   In addition, hearings on the Preliminary 1998 Capital Budget Review will be scheduled within the next two weeks.
   
   d. Committee Updates
   An updated committee roster was distributed. Vice Chair Fritsche noted there were committee vacancies when Mr. Anderson resigned from the Board. Trustee Vekich has been appointed chair of the Educational Policy Committee and Trustee Stephens will be the vice-chair. In addition, Trustee Mohrenweiser will be the vice-chair of the Fiscal Policy Committee.
   
   Vice Chair Fritsche reported that she has served as the liaison to the NorthStar Foundation for the past two years, and has reluctantly decided to step down. Trustee Robert Erickson has agreed to become the liaison in her stead.
   

3. Trustee Reports
   a. Update on Strategic Plan
   Vice Chair Fritsche reported that MnSCU's Strategic Plan, overseen by Dr. Harold Erickson, is on schedule. A report was distributed. Vice Chair Fritsche reported that six teams, one for each of the strategic goals, have been named. A timetable has been created and a draft implementation plan will be submitted to the Board of Trustees in September.
   
   
4. Chancellor's Report
   Chancellor Eaton reported that MnSCU's Strategic Plan has taken an enormous amount of work, for which she thanked Dr. Michael Nugent, deputy to the chancellor for system relations, for taking the lead in conceptualizing the process, and MnSCU's executive staff for their assistance.
   
   Chancellor Eaton announced that Fond du Lac Tribal and Community College will benefit from $22 million dollars that the W. K. Kellogg Foundation has made available to all the nation's tribal colleges over the next five years. A copy of the article from the May 21, 1997, Star Tribune was distributed.
   
   

   a. Legislative Update; End of 1997 Session
   Chancellor Eaton reported that the 1997 Minnesota Legislature has adjourned, and the governor has signed the higher education bill. MnSCU received $110.5 million this year. Last year, MnSCU received $86 million in bonding money, for a total of approximately $200 million in two years. The passage of the higher education bill leaves MnSCU with a significant challenge on how to continue the work on strategic goals and to sustain and enhance the Board's strong commitment to performance and accountability without specific funding for this endeavor.
   
   Chancellor Eaton thanked John Ostrem, deputy to the chancellor for legislative analysis, and John Kaul, deputy to the chancellor for governmental relations, as well as the administrative staff, faculty, students and others for their work during the legislative session.
   
   Mr. Kaul and Mr. Ostrem presented an overview of the 1997 legislative session. A report was distributed. Mr. Kaul reported that MnSCU's 1997 legislative agenda was a success. He continued that MnSCU's base funding was $905 million with an additional $110.5 million in new funding. Last fall, MnSCU's Board requested $128 million. In January, the governor weighed in at $83.3 million, and in the end the legislature provided $110.5 million. The new money will be dispersed as follows: $51.8 million in FY '98 and $58.5 million in FY '99, which is approximately 87 percent of the Board's request.
   
   Mr. Ostrem reported that $66.1 million of the new money is base funding for ongoing state appropriation and educational improvements. One-time funds of $44.4 million are for single purposes, equipment and information systems. Biennial appropriations requested by the MnSCU Board included $55.6 million for educational enhancements, such as programs, student services, advising, class sizes and libraries, $10.5 million for the electronic academy, $22.5 million for instructional technology and equipment, and $15 million for new information systems.
   
   Mr. Ostrem continued that college/university allocations for FY 1998 provides base funding of $450 million. Of the $110.5 million in new funds, $52 million is available for FY 1998 as follows: $35 million for the allocation formula of 70 percent based on appropriation history and 30 percent based on percentage of enrollment, with $17 million for other statewide projects. A report to the legislature is due February 1, 1998.
   
   Several trustees commented that the allocation model passed by the legislature is indicative of the lack of trust and clear communication between the legislature and MnSCU. In the past, each system was given the funds which they would then allocate to each institution, now the funds will go directly to the institutions. Trustee Brataas remarked that while she was pleased with the increase in funds to MnSCU, she was also alarmed by the legislature's action which she feels represents the greatest step in the politicization of higher education in the history of Minnesota. Trustee Brataas urged the Board to dedicate themselves to undertaking an in-depth understanding of the funding and allotment of MnSCU's present and future funding.
   
   Mr. Kaul explained that MnSCU is largely a rural system and legislators and presidents were concerned with MnSCU's proposal.
   
   Mr. Kaul continued the report and explained that MnSCU receives about $233 million in tuition annually, average annual tuition is $2,100. The Board will set tuition rates in July. Mr. Ostrem reported that the legislature increased financial aid to the Higher Education Services Organization (HESO) by $37 million. There was an increase of $3 million for independent students (single, low-income students not dependent on parents or over 24 years of age, without children), a $2 million increase in work study that will permit tutoring by college students in high schools and to use work-study funds to intern in the private sector. Childcare funds received $2.4 million in new funds.
   
   Trustee Robert Erickson announced that he received a letter from Senator Stumpf encouraging the Board to support interns in the private sector. Chancellor Eaton explained that allowing interns to work in the private sector represents a major public policy change in the work study program.
   
   Mr. Ostrem continued with his report. Biennial appropriations included: $1.5 million for flood disaster/snow removal; $500,000 for the Minnesota Career and Educational Planning System; $150,000 for childcare pilots; and $500,000 for the Virtual University, a public/private partnership.
   
   Trustee Brataas requested that the Board be provided the following information relative to financial aid programs: 1) a list of the highest ranked states for financial aid; 2) highest ranked states for tuition; 3) whether or not the reports that used to be produced by the Higher Education Coordinating Board will be produced by another organization; 4) the lowest income allowed for single, low-income students; 5) provide pro and con argument list for why students should be allowed to intern in the private sector; and 5) list of childcare pilot programs.
   
   Other legislation included successfully removing language from the house bill that went to conference committee that would have required the University of Minnesota Board of Regents, as well as the MnSCU Board of Trustees, to sign-off on metropolitan planning. The University of Minnesota and MnSCU has been asked to convene a faculty task force on credit transfer issues, particularly relating to technical colleges and state universities. Legislation also requires a MnSCU college that offers an Associate of Applied Science degree to also offer a diploma or certificate option in that degree. Legislation also requires MnSCU to consult with labor management committees when contracting with food service workers, for example, not faculty subcontracting, on campuses. Legislation also requires MnSCU to continue to license the non-technical college vocational teachers, and allows local deposit of financial aid monies. MnSCU received legislative authority for optional land transactions to buy, sell, build or lease at ten campuses. Legislation created a vocational round table comprised of 13 members, including the chancellor and legislators, to create strategies for vocational technical education and issue a report to the legislature in 1988. Legislation created the Office of Technology which will coordinate technology development, approve contracts and provide technology planning for the state.
   
   In conclusion, Mr. Kaul reported that this legislative session was one of the better sessions in which he has participated and that MnSCU made great gains. Going into conference committee, MnSCU had ten top concerns and all of them, with the exception of the allocation language and degree and diploma language, were favorably addressed. Mr. Kaul thanked John Ostrem, Mary Stanton, assistant director for government relations, and Darla Senn, Web site manager. He also thanked the governor for a generous opening gambit and for signing the bill, the conference committee members, legislative staff, and the Board of Trustees for their involvement and support, presidents, faculty, students, and MnSCU staff.
   
   On behalf of the Presidential Advisory Committee, Dr. Bensen, president, Bemidji State University, thanked the Board of Trustees and staff for their support of MnSCU's legislative efforts. With respect to the allocation of funds, 60 percent of the $110.5 million is slated for the campuses. Preliminary calculations show that Bemidji State University will have less funding this year to run the university programs than it had last year.
   
   Vice Chair Fritsche reported that she and Chancellor Eaton gave a legislative update via a teleconference to the campuses on Tuesday, May 20, 1997.
   
   b. Recommendations for College and University President Appointments
   Vice Chair Fritsche announced again that action on this item will take place later in the day, and not before 1:30 p.m. Vice Chair Fritsche called on people who were present to address the Board with respect to the Anoka-Hennepin Technical College (AHTC) president appointment. The following speakers addressed the Board:
   
   

   • Kevin Lindstrom, counselor, AHTC, asked the Board to not accept the Chancellor's recommendation and to appoint Dr. Korkowski.
   • Dianne Thomas, chief financial officer, Thomas Automotive Group, Anoka, president of the AHTC Foundation, and a member of the search committee implored the Board to appoint Dr. Korkowski as he will best serve the needs of the community and students now and into the future.
   • Joseph Jung, student, AHTC, parliamentarian and incoming legislative liaison to the AHTC Student Senate reported that students are discontent with Chancellor Eaton's recommendation and support the appointment of Dr. Korkowski, who they feel has the best interests of the students in mind.
   • David Jeffrey, employee, AHTC for the past six years, remarked that he has seen noticeable improvement within AHTC over the past two years due to Dr. Korkowski's guidance.
   • Dan Erhardt, chairman of the Anoka County Board for the last ten years, served on the board of the past 15 years, lived in the community for 30 years, and is on the General Advisory Board and AHTC Foundation Board of AHTC. Mr. Erhardt commented that over the past two years, Dr. Korkowski has united the Anoka County community in support of the college.
   • Elliott Perovich, chair, AHTC General Advisory Board, remarked that a letter in support of Dr. Korkowski was distributed to the trustees. Mr. Perovich, also a member of the presidential search committee, commented that business and industry leaders support Dr. Korkowski's appointment. Because the community did not learn until yesterday that Dr. Korkowski was not being recommended, Mr. Perovich urged the Board to not take action on the Chancellor's recommendation today in order to give the community more time to respond.
   • Lonni McCauley, development and community outreach director, AHTC, commented that through Dr. Korkowski's leadership, the Community Partnership Program has helped create unique and strong relationships between community and the campus. She urged the Board to respect the wishes of the community, staff and students by keeping Dr. Korkowski.
   • Dr. Jo Strand, program director and grant writing, Division of Customized Training, AHTC, recommended that the Board not make a decision about the president of AHTC today, and to visit the campus to hear firsthand the staff and student support for Dr. Korkowski.
   • Representative Satveer Chaudry, representing Columbia Heights and Fridley and a member of the Higher Education Finance Committee testified on behalf of Dr. Korkowski. Representative Chaudry commented that Dr. Korkowski has provided the leadership at AHTC which has helped create successful public and private partnerships between businesses and the college and relationships with the community and legislature.
     
     

   This agenda item is continued at agenda item 11, Other Business, page 14.
   

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. MnSCU Revenue Fund FY 1998 Spending Plan
      Facilities Committee Chair Robert Erickson reported that members of the Fiscal Policy & Facilities Committees supported the staff recommended motion for no increase in resident hall or student union fees.
      
      Trustee Robert Erickson moved approval of the FY 1998 spending plans and associated fees for residence halls/dining services and student union programs as outlined in Attachment A. Trustee Mohrenweiser seconded and the motion carried.
      
      
   2. Preliminary 1998 Capital Budget Review
      Facilities Committee Chair Robert Erickson reported that the major topic of the joint committee meeting was the Preliminary 1998 Capital Budget Review. The committees agreed to set hearings on three days in order to hear from the presidents and various communities on the 1998 capital program.
      
      Vice Chancellor King reported that tentative hearings have been scheduled 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. The joint committees will meet again on the 1998 Capital Budget on June 16, 1997, to prepare recommendations for the June 18 Board meeting.
      
      Committee Chair Robert Erickson commented that the committees agreed to adopt a range of between $75 million to $125 million for priority one projects and $50 million to $75 million for priority two and state projects. Priority one projects are HEAPR projects - fire, life, safety requests. Priority two projects are remodeling, new space additions, etc., and MnSCU must pick up one-third of the debt service for any new projects that are not Higher Education Asset Preservation Replacement (HEAPR) related. Each $25 million of bonding in this category represents an additional expense for MnSCU of about $1 million dollars a year in interest.
      
      Vice Chair Fritsche reported that she and Trustee Robert Erickson spent two days and toured St. Cloud State University, St. Cloud Technical College and Pine Technical College.
      
      

   b. Fiscal Policy Committee
   

   1. Deloitte & Touche Report
      Reporting for Committee Chair Chelseth, who was absent because of a business conflict, Committee Vice Chair Mohrenweiser announced that the committee received a report from Deloitte & Touche. Deloitte and Touche performed three tasks: 1) reviewed MnSCU's current format and process for preparing consolidated financial statements; 2) reviewed the consolidation process and performed analytical reviews of financial information at the fund and institution level; and 3) presented a comparison of financial statements reporting models.
      
      Committee Vice Chair Mohrenweiser commented that the committee was concerned with the substance and timing of the Deloitte & Touche report. Deloitte & Touche will present a written report, which will be forwarded to the Audit Committee for review.
      

   
   c. Audit Committee
   

   1. Review of OLA Audits: Minneapolis Community & Technical College, Lake Superior College, A Community & Technical College in Duluth, and Metropolitan State University
      Committee Chair Brataas reported that the committee reviewed audits of the three institutions. The purpose of the audits is to report inappropriate activities in the accounting functions so they can be corrected. Several members of the Office of the Legislative Auditor, including John Asmussen, deputy legislative auditor, were present during the committee meeting.
      
      Interim-President Phil David, Minneapolis Community and Technical College, responded with a written report outlining the findings, the actions taken to correct the findings, and a timetable for correcting the remaining findings.
      
      President Harold Erickson, Lake Superior College, responded to the findings. Committee Chair Brataas commented that the Audit Committee appreciated Dr. Erickson's positive attitude about correcting the findings, acknowledged that budgetary constraints prevented Dr. Erickson from hiring appropriate personnel to perform accepted accounting procedures, and requested a follow-up report in September. The Audit Committee is taking into consideration that Lake Superior is a brand new institution. Duluth did not have a community college with a business office, and the technical college office was run by the Duluth School District.
      
      Dr. Susan Cole, president, Metropolitan State University, presented a response to the findings along with steps and a timetable to correct them.
      
      
   2. Update on Search for Internal Audit Director
      Committee Chair Brataas reported that the search for the internal audit director is progressing. A search committee, chaired by Dr. Berryman, University of Minnesota, has been appointed. Members are Executive Vice Chancellor Lee Kerschner, Itasca Community College President Joe Sertich who was nominated by the chancellor, Winona State University Chief Financial Officer Fred Naas who was also nominated by the chancellor, Vice Chancellor - Chief Financial Officer Laura King, Associate Vice Chancellor of Equal Opportunity and Diversity Tim Price as an ex-officio member, Gail Klodt, University of Minnesota serving as president or designee representing the Minnesota Chapter of Internal Auditors, and Trustee Michael Vekich, Audit Committee member appointed by the chair of the Audit Committee. Employment advertisements have been placed in the Chronicle of Higher Education, Internal Auditor, Journal of Accountancy, National Association of College and University Business Officers, the NACUBO Web Site posting, the Audit Tale - a newsletter of the Twin Cities Chapter of the Institute of Internal Auditors, the Minnesota National Society of CPA's newsletter, MnSCU Employment Opportunities Bulletin, and the Higher Ed Jobs On-line Web Site posting. The director of internal audit is scheduled to begin in September.

   
   
   d. Educational Policy Committee

   1. Proposed Policy 3.3 - Assessment for College Readiness (second reading)
      Committee Chair Vekich reported that Proposed Policy 3.3 - Assessment for College Readiness is a second reading of a policy that will establish a Systemwide policy and standard for the assessment of basic skills of incoming students to enable better judgments for their readiness to function effectively within college level curriculum.
      
      Committee Chair Vekich moved approval of MnSCU Policy 3.3 Assessment for College Readiness and repeals Community College carry forward policy III.03.03 Development Education, and Technical College carry-forward policy 4.1.1.2 Student Assessment. Trustee Robert Erickson seconded and the motion carried.
      
      
   2. Proposed Amendment to MnSCU Policy 3.9 Licensure of Technical College Faculty
      Committee Chair Vekich said MnSCU Policy 3.9 Licensure of Technical College Faculty is also a second reading.
      
      Committee Chair Vekich moved approval to repeal the portion of Policy 3.9 Technical College Licensure Rules titled 3700.1405 Extension Part-time Instructor License. Trustee Maxwell seconded and the motion carried.
      
      
   3. MnSCU Programs and Livable Wage Data
      Committee Chair Vekich reported that Dan Wagner, MnSCU program review specialist, provided a presentation to the committee on linking MnSCU programs to occupations and wage data. Staff is tracking the process and will continue to update the data.
      
      
   4. Welfare Reform
      Committee Chair Vekich reported that Mary Jacquart, MnSCU system director for federal educational grants, provided an overview on welfare reform and its impact on MnSCU.
      
      
   5. Other
      Committee Chair Vekich announced that the "Postsecondary Report to School Districts," MnSCU's summary of a 1996 follow-up report on recent graduates who took developmental/remedial courses was distributed in the trustees' board packets.
      
      

   e. Personnel Policy Committee
   

   1. Unrequested Leave of Absence (Discontinuance & Reduction of Programs at Technical Colleges)
      Committee Chair David Erickson reported that in March, the Board of Trustees acted to place certain named faculty at the technical colleges on unrequested leave. As part of those actions, faculty were informed of their rights to request a full hearing before an independent hearing officer if they wished to appeal the Board's action. Hearings were held in late April and early May. Copies of the findings are in the board packet and the Board must take action on three items: 1) adopt the hearing officer's recommendations and findings of facts and place the employees named on unrequested leave of absence effective at the end of the 1996/97 academic year; 2) confirm the status of employees who have not requested a hearing or who requested a hearing and later withdrew the request and place those employees on unrequested leave of absence at the end of the 1996/97 school year as well, and 3) rescind the Board's earlier action by removing the employees named on the list for unrequested leave of absence based on campus reevaluation of staffing needs for the 1997/98 academic year or the recommendation of an independent hearing officer.
      
      Committee Chair David Erickson moved the recommended resolution placing employees on unrequested leave of absence after review of the hearing officer's recommendation . Trustee Mohrenweiser seconded and the motion carried as follows:
      
      WHEREAS, hearings on the proposed placement of the employees named on the attached list on unrequested leave of absence by the Board of Trustees of the Minnesota State Colleges and Universities were held on April 28, 29, 30, May 1, 2, 5, 6, and 7; and
      WHEREAS, independent hearing officers have submitted written findings of fact, conclusions and recommendations to the Board of Trustees for its consideration; and
      WHEREAS, the following documents have been provided or made available to the members of the Board of Trustees for their review: Independent Hearing Officers' Findings of Fact, Conclusions and Recommendations; the transcript of the hearing; the post-hearing documents submitted to independent hearing officers by MnSCU's representative; and the post-hearing documents submitted to independent hearing officers by the employees representative.
      
      NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees of the Minnesota State Colleges and Universities as follows:
      1. The Findings of Fact, Conclusions and Recommendations submitted by independent hearing officers are hereby adopted and incorporated by reference into this Resolution.
      2. The employees named on the attached list are hereby placed on unrequested leave of absence, without pay, from his/her position with MnSCU effective at the end of the 1996-97 academic year, pursuant to Minnesota Statutes 125.12.
      3. The administration is directed to serve notice of placement on unrequested leave of absence on named employees on or before May 31, 1997. Such notice shall include a copy of this Resolution and a copy of the independent hearing officer's Findings of Fact, Conclusions and Recommendations.
      
      Committee Chair David Erickson moved the recommended resolution placing employees on unrequested leave of absence. Trustee Maxwell seconded and the motion carried as follows:
      
      WHEREAS, the Board of Trustees passed a resolution on March 19, 1997, proposing to place teachers on unrequested leave of absence pursuant to Minn. Stat. §125.12 or Minn. Stat. §125.17
      WHEREAS, the teachers who were proposed for placement on unrequested leave of absence had 14 days from receipt of notice of such action to request a hearing; and
      WHEREAS, the teachers on the attached List A have not requested a hearing over their proposed placement on unrequested leave within the required time period; and
      WHEREAS, the failure of the teachers on the attached List A to timely request a hearing constitutes acquiescence to their placement on unrequested leave of absence; and
      WHEREAS, the teachers on the attached List B timely requested a hearing over their proposed placement on unrequested leave; and
      WHEREAS, the teachers on the attached List B have since withdrawn their hearing requests; and
      WHEREAS, the withdrawal of hearing requests by the teachers on the attached List B constitutes acquiescence to their placement on unrequested leave.
      
      NOW, THEREFORE, BE IT RESOLVED by the MnSCU Board of Trustees as follows:
      1. The teachers named on the attached List A and List B are hereby placed on unrequested leave of absence pursuant to Minn. Stat. §125.12 or Minn. Stat. §125.17 on the grounds of discontinuance of position, lack of pupils, and financial limitations effective at the end of the 1996-97 school year without pay.
      2. That a notice of placement on unrequested leave, together with a copy of this resolution, be served to the teachers named on List A and List B before June 1, 1997.
      
      Committee Chair David Erickson reported that the named list contained a typographical error listing an employee that should not be on the list. He moved the recommended resolution, as amended, rescinding previous notice of unrequested leave of absence. Trustee Maxwell seconded and the motion carried as follows:
      
      WHEREAS, the Board of Trustees passed a resolution on March 19, 1997 proposing to place teachers on unrequested leave of absence pursuant to Minn. Stat.§125.12 or Minn. Stat. §125.17; and
      WHEREAS, the administration at some of the technical colleges have determined it is no longer necessary to place on unrequested leave certain teachers who were previously proposed for such placement; and
      WHEREAS, those administrators have recommended that these teachers be removed from the list of teachers proposed for placement on unrequested leave; and
      WHEREAS, the attached List Number 1 states the names of the teachers who shall be removed from the list of those proposed for unrequested leave.
      
      NOW, THEREFORE, BE IT RESOLVED by the MnSCU Board of Trustees as follows:
      1. The teachers named on the attached List Number 1 shall be removed from the list of teachers proposed for placement on unrequested leave of absence pursuant to Minn. Stat. §125.12 or Minn. Stat. §125.17 and MnSCU shall no longer continue to pursue their placement on unrequested leave effective at the end of the 1996-97 school year.
      2. That a notice be forwarded to the teachers on the attached List Number 1 informing them that they are no longer proposed for unrequested leave effective at the end of the 1996-97 school year.
      
      
   2. Committee Work Plan
      Committee Chair David Erickson reported that Joyce Wood, vice chancellor for personnel, and Michael Goar, system director for labor relations, reviewed a committee work plan through the end of the year.
      
      
   3. Continuation of Profiles of Employees Covered by Collective Bargaining Agreements
      Committee Chair David Erickson reported that Joyce Wood, vice chancellor for personnel, distributed a three-ring binder of MnSCU's collective bargaining agreements to the committee members.

   
   f. Board Operations Committee
   

   1. Amendment to Chapter 1, Policy 1A.1, Appointing Board Members as Ex-Officio Members of Committees (second reading)
      Committee Chair Smoley reported that the Board Operations Committee did not meet for lack of a quorum. The committee had an action item that is an amendment to Chapter 1, Policy 1A.1, Appointing Board Members as Ex-Officio Members of Committees. Chair Smoley said this is a second reading. There was much discussion about whether or not the Board should move ahead and take action on the item or follow established norms for two readings before approving board policies.
      
      Trustee Maxwell made a motion to recommit the action item to the next Board Operations Committee meeting agenda. Trustee Stephens seconded and the motion carried.
      
      

7. Presidential Advisory Committee
   Dr. Bensen, Bemidji State University president and a member of the Presidential Advisory Committee, reported that the campuses would like to convey their excitement to the Board of Trustees about Minnesota's economy and the role that the campuses play in preparing qualified people for a rapidly changing time. With 145,000 students, MnSCU is a preferred provider for Minnesota's economy with an increased level of partnerships and collaborations between MnSCU institutions, communities and businesses.
   
   
8. Joint Council of Student Associations
   Nicholas Hawkins, Northwest Technical College, Moorhead, and president-elect, Minnesota Technical College Student Association (MTCSA) commented that he hoped tuition will be kept to a minimum because of the funding and financial aid given to MnSCU. In addition, MTCSA is pleased that the legislature has recognized the problem of technical college credit transfers and hopes to work with MnSCU to correct it. Mr. Hawkins assured the Board that MTCSA and the Minnesota Community College Student Association are committed to the consolidation of both organizations and drafts of the new Minnesota State Colleges Student Association to their general assemblies during the fall conferences. The target date for completion of the consolidation is July 1, 1998.
   
   Mr. Hawkins reported that he has heard of problems with the consolidation at Eveleth Technical College and he urged the Board of Trustees reexamine the student life policy and make changes to the policy that will address fair distribution and student life community votes to the students at consolidated campuses.
   
   Garret Melby-Aanerurd, vice chair-elect of MSUSA effective July 1, 1997, announced that he is a history major and senior at Moorhead State University and looks forward to a productive year. As vice-chair of the Penny Fellowship, Mr. Melby-Aanerurd announced that two scholarships were recently awarded. A copy of the 4th Annual MSUSA Golf Scramble in support of the Penny Fellowship on August 14, 1997 was distributed.
   
   Vice Chair Fritsche announced that MSUSA had invited the Board of Trustees to a barbecue over today's lunch hour. Today's board meeting agenda did not allow time, but shuttle arrangements will be made for the Board to attend MSUSA's June 18, 1997, barbecue.
   
   Frank Viggiano, executive director, Minnesota State University Student Association (MSUSA) addressed the Board. The new chair is Francis Klinkner, Mankato State University, and the treasurer is Heidi deRuyter, Moorhead State University. Mr. Viggiano summarized MSUSA's legislative efforts and outcomes. Names of two students have been forwarded to Governor Carlson's office as candidates to replace Trustee Knudson.
   
   
9. MCCFA, IFO, and UTCE: Joint Opportunity to Address the Board
   Dave Abel, Inter-Faculty Organization, reported that the IFO supported affordable access for students during the 1997 legislative session.
   
   Larry Litecky, president, Minnesota Community College Faculty Association (MCCFA) reported that legislation was passed which requires MnSCU to increase the percentage of the budget that goes into direct classroom instruction. MCCFA heard two concerns about the electronic academy: 1) that MnSCU make an adequate investment in faculty development so faculty has the ability to use the new technology, and 2) there is an evolving technological disparity between campuses with very sophisticated technology and campuses without access to e-mail or the Web. MCCFA will also participate on the task force for credit transfer for technical students.
   
   
10. Requests by Individuals to Address the Board
    There were no requests by individuals to address the Board.
    
    
11. Other Business
    Closed Session
    Chair Fritsche reported the Board will go into closed session to discuss bargaining tactics pursuant to Minnesota Statute §471.705, subd. 1a. Another closed session will follow to evaluate the performance of Southwest State University President Douglas Sweetland.
    
    Trustee Maxwell moved closing the open session of the meeting to convene in closed session to discuss bargaining tactics pursuant to Minnesota Statute §471.705, subd. 1a (1996) (Minnesota Open Meeting Law). Trustee David Erickson seconded and the motion passed.
    
    Open Session
    Chair Fritsche called the open session to order at 4:37 p.m., and announced that the remaining agenda item, 4b, Chancellor's Report, Recommendations for College and University Presidents was an action item.
    
    Chancellor Eaton explained that MnSCU has undertaken seven presidential searches. The search process involves the establishment of a college or university committee, chaired by a MnSCU president, and includes participants from the administration, students, faculty and the community. A series of open forums and interviews with the semifinalists and finalists were conducted at each college and university. The searches have been an extensive process over the past six months with 406 candidates applying for the positions.
    
    Trustee Vekich moved to table action on presidential appointments until the June Board meeting. Trustee Mohrenweiser seconded and the motion passed.
    
    
12. Adjournment
    Trustee Vekich moved adjournment of the meeting at 4:40 p.m. Trustee Mohrenweiser seconded and the motion passed unanimously.

Christine Fritsche, Vice Chair - Board of Trustees
Recorded by Inge Chapin

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