April 1998 Board Meeting Minutes

Board of Trustees Meeting Minutes
Wednesday, April 29, 1998
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, Michael Nesdahl, Denise Stephens, Michael Vekich, James Wafler, Charles W. Williams

Trustees Absent:

Call to Order
Chair Vekich called the meeting to order at 1:45 p.m., and announced that a quorum was present. There were no changes to the agenda.
Chair's Report
a. Approval of March 18, 1998, Board of Trustees Meeting Minutes
Trustee David Erickson moved approval of the March 18, 1998, meeting minutes. Trustee Dotson seconded and the motion carried without dissent.
b. Report of Executive Committee Meeting of April 1, 1998
Chair Vekich reported that the Executive Committee met on April 1, 1998. The committee reviewed the April Board meeting agenda.

c. Other
Chair Vekich congratulated Trustee Charles Williams and Trustee Daniel G. Coborn and announced that Governor Carlson had re-appointed each of them to six-year terms on the Board of Trustees.

Chair Vekich announced that Ross Murray, a student at Rainy River Community College, was named by USA Today and the American Association of Community Colleges as an All USA Academic Team member. The All USA Academic Team members are selected for their grades, leadership and service to others by Phi Beta Kappa, the National Honor Society for two-year colleges. Mr. Ross, selected from a field of 1,300 students, has a 4.00 GPA and is the only community college student from Minnesota to win the award.

Chair Vekich announced that the Board of Trustees will host a dinner on May 19, 1998, to celebrate the service of Trustees who have left the Board within the past year, and to celebrate a successful legislation session. Invitations will be mailed.
Trustee Report
a. Association of Governing Boards, National Conference on Trusteeship, April 18- 21, 1998

Trustee Wafler reported that he and Trustees Vekich, Maxwell, Brataas, David Erickson, Robert Erickson, Nesdahl, Chelseth, Caffey, and Chancellor Anderson attended the Association of Governing Boards National Conference on Trusteeship in Nashville on April 18-21, 1998. Trustee Wafler highlighted some of the conference sessions that included presidential and board assessment, legislation impacting higher education institutions, transforming higher education for the future, new roles for public sector boards, and institutional accreditation. The Year 2000 Fellowship Program, a collaboration between the University of Maryland and Sylvan Learning Systems, is a fellowship program and training base for students who are helping businesses solve their year 2000 problems. Trustee Wafler commented that the program may be applicable to MnSCU institutions.
Chancellor's Report: Morris J. Anderson.
a. Appointment of President of Pine Technical College
Chancellor Anderson reported that Gene Biever announced his resignation as president of Pine Technical College, effective June 30, 1998. The search committee, chaired by Dr. Kenneth Mills, president of South Central College, undertook a nationwide search for his replacement. After an extensive review process, the search committee recommended four candidates. Three of them were interviewed by the Chancellor and Trustees Wafler, Robert Erickson and Stephens. Chancellor Anderson recommended the appointment of Dr. Robert L. Musgrove as president of Pine Technical College. Dr. Musgrove has accepted the position, subject to the Board's approval, but is unable to be present today, due to a prior commitment.

For the past eight years, Dr. Musgrove has served as Dean of Instruction at Texas State Technical College in Sweetwater, the West Texas campus of the technical college system of Texas. He holds a Ph.D. in Educational Administration from the University of Texas at Austin, an M.A. in English and M.Ed., English Education from the University of Virginia, Charlottesville, Virginia and a B.A. In English from the University of Texas at Austin.

Trustee Robert Erickson moved to approve the appointment of Dr. Robert L. Musgrove as president of Pine Technical College, effective July 1, 1998, under the terms and conditions of the Personnel Plan for Excluded Administrators. Trustee David Erickson seconded and the motion carried without dissent.

b. Marketing Plan
Chancellor Anderson reported that MnSCU's marketing plan is outlined in the Board packet. Marketing efforts include increased radio advertising, coordination of publications, revamped web site and a MnSCU media guide.

c. Legislative Update: End of 1998 Session
A summary report of the 1998 legislative session was distributed. Chancellor Anderson commented that MnSCU has much to be thankful for this session due to the strong support of Governor Carlson and key legislators. The student organizations, faculty and staff across the system worked hard on MnSCU's behalf. MnSCU's credibility was also bolstered by the many presidents and several members of the Board (Trustees Vekich, Chelseth, R. Erickson, Wafler) who attended and participated in the legislative process, and whose presence impressed legislators. MnSCU's legislative staff, John Kaul, deputy to the chancellor for government relations; John Ostrem, deputy to the chancellor for legislative analysis; Mary Stanton, assistant director for government relations; Elaine Bellew, associate vice chancellor for facilities and revenue; and Laura King, vice chancellor-chief financial officer.

Chancellor Anderson reported on several principles relative to the allocation of the supplemental budget. The principles include honoring the legislative intent and commitments, and to prioritize and fund as much of the supplemental budget request as possible. An allocation plan will be in place shortly and will be provided to the institutions as soon as possible so they can plan accordingly.

MnSCU received $36 million dollars, of which $10 million is slated for business and industry grants. Of that, $9.4 million is nonrecurring, $600,000 is recurring. Industry groups, with targeted efforts in the areas of taconite, aviation, health care, precision manufacturing, software industry and printing, will receive $4 million through the institutions. Institutional grants for regional and local partnerships will receive $5 million, of which about $1 million will be used for technology innovation.

Enhancing allocations include $20 million in recurring funds that is basically split between the base equalization request and student initiatives request. MnSCU will recommend that about $10.4 million of that will go into base equalization process. About $9.6 million will go into a number of student-based initiatives, the bulk of which will go into an equipment pool to institutions. About $5 million of it will go out on a formula basis, and about $2 million will go out on an incentive basis with a requirement for matching dollars coming from the business communities or other interested parties. There will be additional work on the MnSAT transponder, in terms of digitizing it and looking at satellite dishes for the institutions. There is interest from a number of campuses on an investment into the degree audit system and some funds into the transfer of credit initiatives, enrollment management and marketing support as well as staff and faculty professional development. The last two categories that were spelled out by the legislature include a $3 million library grant that will go out on formula. The college of education is $3 million of nonrecurring to be allocated by formula to state universities for education curriculum redesign and to integrate technology into the classroom.

Chair Vekich thanked Chancellor Anderson for his leadership during the legislative session.
Chancellor's Consent Agenda
There were no items for the Chancellor's Consent Agenda.
Joint Council of Student Associations
The following representatives of student associations addressed the Board of Trustees: Jason Krogerson, president, Minnesota Community College Student Association; Joe Jung, legislative liaison, Minnesota Technical College Student Association; Francis Klinkner, state chair, Minnesota State University Student Association, who introduced Mr. Tony Rust the newly-elected state chair from Southwest State University; and Frank Viggiano, executive director, Minnesota State University Student Association.
MCCFA, IFO, and UTCE: Joint Opportunity to Address the Board
The following representatives of faculty associations addressed the Board of Trustees: Dr. Larry Litecky, president, Minnesota Community College Faculty Association; Dr. Dave Abel, president, Inter Faculty Organization; and Bruce Hemstad, United Technical College Educators.
Board Standing Committee Reports
Trustee David Erickson announced that the Personnel Policy Committee will hold a special meeting on May 14, 1998, to discuss the MnSCU administrator's plan. It is the intent of the committee to forward the plan to the Board of Trustees for approval at the May meeting.
a. Educational Policy Committee
1. Program Approval:
  BS, Computer Science, Metropolitan State University Committee Chair Fritsche moved that the Board of Trustees approve the request by Metropolitan State University to offer a Bachelor of Science Degree in Computer Science. Trustee David Erickson seconded and the motion carried without dissent.
2. Program Approval:
  Advanced Technical Certificate, Advanced Collision Services, Ridgewater College, Willmar Campus
  Committee Chair Fritsche moved that the Board of Trustees approve the request by Ridgewater College, a Community and Technical College, to offer an Advanced Technical Certificate in Advanced Collision Services at the Willmar Campus. Trustee David Erickson seconded and the motion carried without dissent.
3. Program Approval:
  AS, Computer Networking and Telecommunications; Certificate, Computer Help Desk Specialist; Certificate, Network Support and Administration, Anoka-Ramsey Community College, Cambridge Campus and Coon Rapids Campus
  
  Committee Chair Fritsche moved that the Board of Trustees approve the request by Anoka-Ramsey Community College to offer an Associate of Science in Computer Networking and Telecommunications degree, a Network Support and Administration certificate, and a Computer Help Desk Specialist certificate at the Cambridge and Coon Rapids' campuses. Trustee Nesdahl seconded and the motion carried without dissent.
4. Policies (Second Reading)
  Proposed MnSCU Policy 3.21 Undergraduate Credit Transfer
  Committee Chair Fritsche reported that the recommended motion was revised during the committee meeting. Copies of the revised motion were distributed. The underlined language represents the revision.
  
  Committee Chair Fritsche moved that the Board of Trustees approve the recommended <#policy|157#>MnSCU Policy 3.21 Undergraduate Credit Transfer policy and repeals carry forward policies CC III.01.10 - Transfer Standards and III.01.11 - Transfer of Technical Credits; SU Policy 4.5 - Policy Regarding Transfer of Lower Division Credit from Two-Year Colleges; and T. C. Policy 2.3.2.0 - Credit Transfer. The Board of Trustees shall review the policy implications by July 1, 2000. However, staff shall report on the progress of work by July 1, 1999. Trustee Wafler seconded and the motion carried without dissent.
  
  Proposed Amendment to MnSCU Policy 3.6 Student Conduct
  Committee Chair Fritsche moved that the Board of Trustees approve the amendments to <#policy|142#>MnSCU Policy 3.6, Student Conduct underlined on the attached report (pages 50-52 of the board packet). Trustee David Erickson seconded and the motion carried without dissent.
5. Assessment Policy Implementation Status Report
  Committee Chair Fritsche reported that Assessment Policy Implementation Status Report was postponed until the May meeting.
6. Minneapolis Community and Technical College Campus Overview
  Committee Chair Fritsche reported that the committee met at Minneapolis Community and Technical College on the morning of April 28. She thanked President Davis, faculty, students and staff for providing a very informative overview of the admission process and credit transfers.
7. (7) Other
  Committee Chair Fritsche reported that the Electronic Academy Summer Institute will be at Bemidji State University on June 1-4, 1998.
b. Joint Fiscal Policy and Audit Committees
1. FY1997 Financial Statements
  Audit Committee Chair Brataas reported that the committee reviewed the FY1997 Financial Statements. The presentation was made by Vice Chancellor- Chief Financial Officer King.
  Trustee Robert Erickson reported that during the committee meeting, Vice Chancellor King was asked to inquire whether the Office of the Legislative Auditor would perform an independent audit of MnSCU's financial statements. Chair Vekich delegated this item to the Audit Committee for review and recommendation.
2. FY1997 Office of the Legislative Auditor (OLA) Statewide Audit Report
  Audit Committee Chair Brataas reported that Claudia J. Gudvangen, CPA, deputy legislative auditor, reported on the FY1997 Office of the Legislative Auditor Statewide Audit Report. The report concluded that MnSCU has made improvements in its ability to accumulate financial information since the merger, but that problems remain.
3. Student Information Systems Update - CSC Report
  Audit Committee Chair Brataas reported that the joint committees discussed the CSC report at length during its meeting on April 28. The CSC consultant, John Hurley, appeared before the joint Fiscal Policy and Educational Policy committees on April 29 and answered several questions about the report. Improvements have been made in the student information system. An newly created organization chart for a MnSCU campus services unit was distributed.
c. Facilities Committee
1. Presentation of Campus Master Plan/ Alexandria Technical College
  Facilities Committee Chair Robert Erickson reported that President Larry Shellito, Alexandria Technical College, provided the committee with a presentation on the campus master plan. President Shellito informed the Board that the high school located near the campus may be for sale.
d. Audit Committee
Committee Chair Brataas reported that the Institute of Internal Auditors announced on April 8, 1998, that it has awarded the William S. Smith Gold Medal Award to John G. Asmussen for receiving the highest score on the international certified internal auditor examination. Mr. Asmussen received the highest score from a field of over 2,800 candidates.
1. Follow-up Activity Report - 1st Quarter 1998
  Committee Chair Brataas reported that the follow-up activity report for 1st quarter 1998 noted that 71 percent of prior audit findings have been resolved. Only 49 findings classified as critical remain unresolved.
2. Interim Report: Year 2000 Computing Problem
  Committee
  Chair Brataas reported that the committee discussed the interim report on the year 2000 computing problem. The overall conclusion is that MnSCU faces tremendous uncertainty about its vulnerability with the year 2000 computing problem. The Office of Internal Auditing will continue to study the issue and plans to issue a final report in July 1998. The office will also continue to monitor progress towards resolved the problem.
3. Review Potential Audit Topics for FY1999
  Committee Chair Brataas reported that the committee will report on potential future audit topics at the May meeting.
e. Board Operations Committee
1. Informational Review Chapter 1. Board Policy
  Committee Chair Dotson reported that the committee reviewed a rewrite of Chapter 1 that has been in process for over a year. The committee will continue to review the new language at the May meeting. Once the rewrite is completed, the policy will be sent out to appropriate parties for review and comment. After that, it will be presented to the Board for approval.
2. Five-Year Board Calendar
  Committee Chair Dotson reported that the committee reviewed a draft five-year board calendar. The calendar has guidelines that provide for two Board meetings a year on campuses. Committees of the Board will also visit campuses for hearings, tours and educational purposes at various times throughout the year.
3. Board's Goal for Increased Use of Technology
  Committee Chair Dotson reported that the committee members used their laptop computers and viewed a demonstration of information available on MnSCU's web site.
f. Joint Fiscal Policy and Educational Policy Committees
1. FY1999 Tuition and Fees Recommendation (First Reading)
  Educational Policy Committee Chair Fritsche reported that the joint committees reviewed the FY1999 tuition and fees recommendation. There was discussion about Bemidji, Mankato, and Winona State Universities' proposed tuition banding, charging a per credit rate for the first eleven credits and a banded rate for 12-18 credits.
2. Biennial Budget Development and Allocation Model Update - FY2000 and Beyond
  Educational Policy Committee Chair Fritsche reported that the joint committees reviewed the biennial budget development and allocation model. Principles, assumptions, and implications for the allocation formula were discussed.
3. Other
  Educational Policy Committee Chair Fritsche reported the joint committees continued the discussion that was carried over from the joint Fiscal Policy and Audit Committees' meeting of April 28, 1998 on the student information systems update -CSC report. The consultant from CSC, John Hurley, attended the meeting and provided an overview of the report.
g. Fiscal Policy Committee
Fiscal Policy Committee Chair reported that the Fiscal Policy Committee meeting was canceled due to time constraints. The five agenda items shown below will be presented to the committee at the May meeting.
1. Proposed MnSCU Policy 5.7, Travel Management
2. Proposed Amendment to MnSCU Policy 8.1, Gifts and Grants
3. Repeal/Replacement of Carry-Forward Policies
4. State Board of Investment Performance Review Concerning the Revenue Bond Fund
5. Discussion of MnSCU College/University Business Service
Requests by Individuals to Address the Board
There were no requests to address the Board.
Other Business
Closed Session
Chair Vekich called for a motion to go into closed session to discuss the status of the contract negotiations with IFO, MCCFA, and UTCE pursuant to Minnesota Statute §471.705, subd. 1a (1996) (Minnesota Open Meeting Law).

Trustee Williams moved to close the public session of the meeting and convene in closed session at 3:35 p.m. Trustee Nesdahl seconded. The motion carried without dissent.

Trustee Wafler moved to adjourn the closed session of the meeting and convene in open session at 4:40 p.m. Trustee David Erickson seconded and the motion carried without dissent.
Adjournment
Trustee David Erickson moved adjournment of the open meeting. Trustee Fritsche seconded and the motion to adjourn carried at 4:41 p.m.

Michael Vekich, Chair
Recorded by Inge Chapin