December 1998
Board Meeting Minutes

Board of Trustees Meeting Minutes
Wednesday, December 16, 1998
World Trade Center
St. Paul, Minnesota

Trustees Present: Andrew Boss, Nancy Brataas, Kathleen Caffey, Archie D. Chelseth, Daniel G. Coborn, Dennis Dotson, David Erickson, Robert Erickson, Christine Fritsche, Michael Nesdahl, Michael Vekich, James Wafler

Trustees Absent: Mary Choate, Joseph Jung, Charles W. Williams

1. Call to Order
   Chair Vekich called the meeting to order at 1:05 p.m. and announced that a quorum was present. There were no changes to the agenda.
2. Chair's Report

   a. Approval of November 18, 1998, Meeting Minutes
   Trustee David Erickson moved approval of the November 18, 1998, meeting minutes. Trustee Robert Erickson seconded. The minutes were approved without dissent.

   b. Chancellor's Employment Agreement
   Chair Vekich reported that at the November 18, Board meeting, the Board of Trustees appointed a negotiating team (Chair of the Board, Vice Chair and Chair of the Personnel Policy Committee) to negotiate an employment agreement with the Chancellor. A draft employment agreement references the Chancellor's position description as outlined in Board Policy 1A.3, the Chancellor's goals and objectives, and vision, long-term strategy for MnSCU and policies and procedures for evaluation of the Chancellor. Final negotiations are underway.
   
   Trustee Brataas moved that upon completion of the final Employment Agreement with Morris J. Anderson by the Chair, Vice Chair and Chair of the Personnel Policy Committee, the Board of Trustees authorizes the Executive Committee to suspend Policy 1A.3 regarding appointment of Interim Chancellor. The Board also delegates authority to the Executive Committee to approve: (1) the terms and conditions of the Agreement, (2) the policies and procedures for review of the Chancellor, (3) the criteria for which the Chancellor shall be evaluated, and (4) the appointment of Morris J. Anderson as Chancellor of the Minnesota State Colleges and Universities. The Board also authorizes the Chair to execute the Agreement following an affirmative vote of the Executive Committee. Trustee Robert Erickson seconded and the motion carried without dissent.

   c. Report of the Executive Committee, December 2, 1998

   • Revisions to Chapter One, Board Policy
     Trustee Robert Erickson moved the recommended motion. Trustee Brataas seconded. After a brief discussion, Trustee R. Erickson withdrew the motion.
     
     Trustee Dotson moved that the Board of Trustees relocates sections 1A.5 (Naming Colleges and Universities) to Section 6.3 (Facilities Chapter), Section 1A.7 (Eligibility for Early Separation Incentives) to Section 4.12 (Human Resources Chapter), and Section 1A.8 (Expense Allowances) to Section 4.13 (Human Resources Chapter). Further, the Board moves to delete the remaining section of Chapter 1A and replace them with language presented as "Chapter 1A Revisions," dated December 10, 1998, and to reinstate inadvertently stricken language, Subpart C (interim appointment) on page 12, and to move Subpart C to page 10, and to remove the language referencing 1996. Trustee Fritsche seconded and the motion carried without dissent.
     

   d. Other
   Chair Vekich announced that the Board of Trustees will visit Metropolitan State University, Minneapolis Community and Technical College and Century College on January 13.
   
   Trustee Chelseth announced that the Ad Hoc Legislative Committee will meet on January 13, at 4:00 p.m.
   

3. Trustee Report
   • Approval of Board of Trustees Seal
     Trustee Chelseth moved that the Board of Trustees adopts and approves the use of the seal designed for the MnSCU Board of Trustees as proposed by the Ad Hoc Seal Committee. Trustee Brataas seconded and the motion carried without dissent.
   • NorthStar Foundation
     Trustee Robert Erickson, liaison to the NorthStar Foundation, reported that the NorthStar Foundation has revised its mission to move from being a foundation that was exclusively for the benefit of state universities to being one that also encompasses the technical colleges, community colleges, and consolidated colleges.
     
     Chair Vekich announced that invitations will be sent out for MnSCU's second annual foundation thank you luncheon that will be held on January 20.
     
4. Chancellor's Report: Morris J. Anderson.
   Chancellor Anderson reported that Governor-elect Ventura visited the system office on December 4. His visit was broadcast live to MnSCU's 53 campuses.
   
   MnSCU recently unveiled it's redesigned web site. Chancellor Anderson announced that it is designed to be more informative and user-friendly.
   
   Chancellor Anderson and Vice Chancellor/Chief Financial Officer King met recently with President Yudof and members of his staff at the University of Minnesota to discuss respective budget proposals.
   
5. Joint Council of Student Associations
   The following representatives of student associations addressed the Board of Trustees: Tony Rust, state chair, Minnesota State University Student Association, Maximilian Wasdahl, president, Minnesota State College Student Association. For the record, Mr. Wasdahl reported that the last name of the vice president of MSCSA was incorrectly spelled in the November 18, 1998, Board of Trustee meeting minutes. The correct spelling of the last name is Melin.
   
6. MCCFA, IFO, and UTCE: Joint Opportunity to Address the Board
   Dave Abel, president, Inter-Faculty Organization, addressed the Board of Trustees.
   
7. Board Standing Committee Reports
   
   a. Educational Policy Committee
   1. Metro Plan Draft Report
      Committee Chair Fritsche reported that the Metro Plan Report is in draft form as there will be technical and formatting changes. None of the changes will be substantive.
      
      Committee Chair Fritsche moved that the Board of Trustees approves the Metro Plan Report and authorizes the Chancellor to share the report with the Legislature. Trustee Wafler seconded and the motion carried without dissent.
      
      Committee Chair Fritsche expressed appreciation on behalf of the Board of Trustees to the following people who worked on the Metro Plan: Linda Baer, senior vice chancellor for academic and student affairs, Leslie Mercer, associate vice chancellor for policy and planning, Leo Christenson, system director for planning, the metro area presidents, and Presidents Ann Wynia, North Hennepin Community College, Tom Horak, Normandale Community College, and Charles Hays, Century College for hosting the three public hearings. Trustee Fritsche also thanked the presidents Bruce Grube, St. Cloud State University, Richard Rush, University of Minnesota, Mankato, and Darrell Krueger, Winona State University for their assistance.
   2. Minnesota State University Akita Program Update
      Trustee Fritsche moved that the Board of Trustees approves up to an additional $300,000 in support of Minnesota State University-Akita (MSU-A) during fiscal year 2000. In addition, the Board directs the Chancellor and MnSCU staff in Minnesota and Japan to address the following issues related to the ongoing operation of MSU-A:
      • complete a substantial review of the terms of the existing 25-year agreement;
      • finalize efforts with our Japanese partners to transfer all of the Japanese responsibilities under the agreement to the Prefecture;
      • assess existing student marketing, recruitment, and transfer opportunities, establishing targets as appropriate, and;
      • complete a Systemwide assessment of global education opportunities.

      
      The Chancellor will provide a progress report on Akita at the April Board meeting. A full report covering implementation of the four objectives contained in this motion will be provided at the September meeting. Trustee Wafler seconded and the motion carried with Trustee Brataas voting nay.
      
      Chair Vekich requested a financial summary of MSU-Akita for the last four years, including the total number of students and revenue generated, the portion of operating costs that are not reimbursed (paid for) by MnSCU, and any other financial data that staff deems appropriate. Chair Vekich also requested a scenario including dates when MnSCU could withdraw from the contract between MnSCU and Yuwa-machi, and what financial obligations MnSCU would be obligated for; and the amount of unreimbursed costs not yet paid for by our Japanese partners.

   3. Program Approval: Advanced Technical Certificate, Advanced Distribution Logistics, St. Paul Technical College
      Committee Chair Fritsche moved that the Board of Trustees approves the request by St. Paul Technical College to offer an Advanced Technical Certificate in Advanced Distribution Logistics. Trustee David Erickson seconded and the motion carried without dissent.
   4. Program Approval: AS, Outdoor Leadership, and Certificate, Outdoor Leadership, Rainy River Community College
      Committee Chair Fritsche moved that the Board of Trustees approve the request by Rainy River Community College to offer an Associate of Science in Outdoor Leadership and a Certificate in Outdoor Leadership. Trustee David Erickson seconded.
      
      There was a lengthy discussion relative to whether there was sufficient demand for this type of program.
      
      The motion carried with Trustee Wafler voting nay.
   5. Approval of Mission Statements: Hennepin Technical College and Northwest Technical College
      Committee Chair Fritsche moved that the Board of Trustees approves the mission statements of Hennepin Technical College and Northwest Technical College. Trustee Wafler seconded and the motion carried without dissent.
   6. Preliminary Draft of Report to Legislature on Applied Doctorates
      Due to time constraints, this item was postponed until the January meeting.
   7. Other
      Committee Chair Fritsche thanked the students at North Hennepin Community College and President Wynia for inviting the Board of Trustees to participate in Governor-elect Ventura's visit to their campus on December 15.
      
      Committee Chair Fritsche announced that Michael Dolence, the author of Transforming Higher Education, will be coming to Minnesota on February 11, 1999. Trustees, MnSCU staff, and other interested parties will be invited to hear Dr. Dolence speak.

   b. Personnel Policy Committee

   1. 403 (b) Legislative Mandate Report
      Committee Chair Brataas reported that the 403 (b) legislative mandate report is an information item.
   2. Sabbaticals Report
      Committee Chair Brataas reported that the sabbaticals report is an information item, and will be presented annually.

   c. Audit Committee

   1. Year 2000 Computing Report
      Committee Chair Boss reported that the Year 2000 computing report is an information item and is presented monthly.
   2. Select Internal Auditing Projects for Remainder of FY1999
      Committee Chair Boss reported that Internal Auditing will perform a best practices study focusing on the development of a code of conduct for MnSCU. A final report is scheduled by June 1999.
   3. Annual Audit Committee Report
      Committee Chair Boss reported that Executive Director of Internal Auditing John Asmussen presented an annual activity report as an information item.

   d. Finance/Facilities Policy Committee

   1. Inver Hills Community College Instructional Building Schematic Design
      Committee Vice Chair Coborn moved that the Board of Trustees approve the schematic design of the Inver Hills Community College instructional Building as presented. Trustee R. Erickson seconded and the motion carried without dissent.
   2. Minnesota State University, Mankato - Taylor Center Project
      Committee Vice Chair Coborn reported that President Rush, Minnesota State University, Mankato presented an overview of the Taylor Center Project. This item will be an action item at the January meeting.
   3. 1999 Special Capital Projects Legislative Request
      Committee Vice Chair Coborn reported that this item will be an action item at the January meeting.
   4. Presentation of Campus Master Plan - St. Cloud State University
      Committee Vice Chair Coborn reported that the Committee reviewed a presentation on St. Cloud State University's campus master plan by President Bruce Grube.
   5. Capital Improvement Projects Status Report
      Committee Vice Chair Coborn reported that the capital improvement projects status report is an information item.
   6. Acquisition, Disposal and Leasing of Real Property
      Committee Chair R. Erickson reported that the acquisition, disposal and leasing of real property is an information item.
   7. FY1999 Institutional Budgets Including FYE Update
      Committee Chair R. Erickson reported that the Committee reviewed the FY 1999 institutional budgets including FYE update and a report on the reserve balance by institution.
   8. Debt Management Guidelines 1999-2008
      Committee Chair R. Erickson reported that the Committee reviewed the debt management guidelines.

   e. Joint Finance/Facilities Policy and Educational Policy Committee

   1. FY2000-2001 Biennial Operating Budget Request
      Committee Chair R. Erickson moved that the Board is firmly committed to achieving adequate funding for the Minnesota State Colleges and Universities. The Board of Trustees approved the FY2000-2001 biennial budget request as outlined in attachment A and B (located on pages 292-298 of the December Board meeting materials) and directed the Chancellor to prepare the documents for submission to the Governor and the Department of Finance. Trustee Fritsche seconded and the motion carried without dissent.
      
      Committee Chair R. Erickson noted that attachment D, the FY2000-2001 Biennial Operating Budget- Supplement Reports will be an action item at the January meeting.
8. Requests by Individuals to Address the Board
   There were no requests to address the Board of Trustees.
   
9. Other Business
   There was no other business to come before the Board of Trustees.
   
10. Adjournment
    Trustee Wafler moved to adjourn the meeting. Trustee Fritsche seconded and the meeting adjourned at 2:30 p.m.

Michael Vekich, Chair

Recorded by Inge Chapin