March 1998
Board Meeting Minutes

Board of Trustees Meeting Minutes
Wednesday, March 18, 1998
World Trade Center
Saint Paul, Minnesota

Trustees Present: Nancy Brataas, Archie D. Chelseth, 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: Kathleen Caffey, Daniel G. Coborn

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 January 21, 1998, Board of Trustees Meeting Minutes

   b. Approval of February 4, 1998, Board of Trustees Meeting Minutes

   c. Approval of February 5, 1998, Board of Trustees Meeting Minutes

   d. Approval of the December 16, 1997, Ad Hoc Committee on Legislative Planning Meeting Minutes

   Trustee Maxwell moved approval of the January 21, February 4, February 5, 1998, and December 16, 1997, meeting minutes. Trustee Mohrenweiser seconded.

   Trustee Stephens noted corrections to the February 4 and February 5 minutes. The Board of Trustees approved the February 4 and February 5 minutes as corrected, and the January 21, 1998, and December 16, 1997, minutes as presented, without dissent.

   e. Report of Executive Committee Meetings of February 2 and March 2, 1998

   Chair Vekich reported that the Executive Committee met on February 2 and March 2, 1998. The committee reviewed the March Board meeting agenda at the March 2 meeting.
   

3. Trustee Report

   Trustee Robert Erickson reported on a recent meeting of the NorthStar Foundation Board.
   

4. Chancellor's Report: Morris J. Anderson.

   Appointment of President of Fergus Falls Community College
   Chancellor Anderson reported that Dr. Kenneth Peeders has been acting president at Fergus Falls Community College since May 1997, when former President Dan True retired. Chancellor Anderson recommended the appointment of Dr. Peeders as president of Fergus Falls Community College. AFSCME Local 4001 and the faculty of Fergus Falls Community College have sent letters in support of Dr. Peeders. In addition, Dr. Peeders has strong student and community leadership support.

   Chancellor Anderson commented that his recommendation of Dr. Peeders' appointment is a departure from MnSCU Policy Chapter 1A.4, Part 5, and that the Personnel Policy Committee reviewed the matter.

   Trustee David Erickson explained that Dr. Peeders' appointment will be an exception to Board Policy Chapter 1A.4, Part 5, which states that, "an individual holding an interim appointment as chancellor or president shall not be eligible for appointment to the position in which she/he is serving as an interim appointee." Dr. Peeders is acting president, and while the policy does not specifically mention "acting," the Personnel Policy Committee felt it would be appropriate for the Board of Trustees to suspend the rules to make an exception to the Board Policy.

   Trustee David Erickson moved to suspend the rules to allow consideration of an exception to Board Policy Chapter 1A.4, Part 5. Trustee Robert Erickson seconded and the motion carried on a roll call vote of 12 in favor (Trustees Williams, Wafler, Stephens, Nesdahl, Mohrenweiser, Maxwell, Fritsche, Dotson, Brataas, R. Erickson, D. Erickson, and Vekich) and none opposed.

   Trustee David Erickson moved to approve the appointment of Dr. Kenneth Peeders as president of Fergus Falls Community College, not withstanding the provisions of Board Policy 1.A.4, Part 5, effective immediately, under the terms and conditions of the Personnel Plan for Excluded Administrators. Trustee Williams seconded and the motion carried without dissent.

   Dr. Peeders thanked the Board of Trustees, Chancellor Anderson, the faculty, staff, students and community of Fergus Falls Community College for the opportunity to serve as president., and commented that he is committed to offering an opportunity for success to every student entering Fergus Falls Community College.

   Chancellor Anderson reported that Dennis Hopman has agreed to serve as interim president of Northwest Technical College, beginning April 1, 1998. Mr. Hopman served as president of Northwest Technical College, Detroit Lakes campus, until his retirement in 1995. He is expected to serve as interim president through November 1998, or until the appointment of a permanent president, whichever occurs first. The current president, Dr. Ray Cross, has resigned effective May 31, 1998, to become the president of the State University of New York at Morrisville.

   Chancellor Anderson commented that he is over the halfway mark of completing his goal of visiting all of MnSCU's campuses. Recent visits include Anoka-Ramsey Community College and Century College, a Community and Technical College. Upcoming visits are scheduled for St. Paul Technical College, Hennepin Technical College, and Dakota County Technical College.

    

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: Joe Jung, legislative liaison, Minnesota Technical College Student Association; Francis Klinkner, state chair, Minnesota State University Student Association; and Jason Krogerson, president, Minnesota Community College Student Association.
   

7. 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.
   

8. Board Standing Committee Reports

   a. Facilities Committee

   1. Review of Delegation Principles (Second Reading)
      Facilities Committee Chair Robert Erickson moved that the Board of Trustees approve the facilities management program administrative re-engineering outlined above and in attachment A (pages 34-37 of the meeting materials), and directs the Chancellor to complete implementation steps. The Chancellor is further directed to provide the resources necessary to ensure a successful transition. The Chancellor will return to the Board in Summer 1998 with recommendations concerning institutional real estate leases for the Board's approval. Trustee David Erickson seconded and the motion carried without dissent.
   2. Deferred Maintenance, ADA, and OSHA Survey Report
      Facilities Committee Chair Robert Erickson reported that the committee heard an update on the deferred maintenance, ADA, and OSHA Survey Report.
   3. Capital Improvements Projects Status Report
      Facilities Committee Chair Robert Erickson reported that the committee received a capital improvements projects status report.
   4. Presentation of Campus Master Plan/Normandale Community College
      Facilities Committee Chair Robert Erickson reported that Normandale Community College President Horak provided the committee with a presentation on the campus master plan.

   b. Joint Fiscal Policy and Facilities Committees

   1. Debt Management Guidelines 1998-2007 (Second Reading)
      Facilities Policy Committee Chair Robert Erickson moved that the Board approve the 1998-2007 debt management guidelines outlined above (pages 71-72 of the meeting materials). Trustee Nesdahl seconded and the motion carried without dissent.

   c. Fiscal Policy Committee

   1. MnSCU Reserves Policy (Second Reading)
      Committee Chair Chelseth explained that the committee received a new page 83, or Attachment A, of the meeting materials, which correctly sets forth the new language adopted in committee. Policy 5.4 sets the minimum reserve at five percent, establishes a range of five to seven percent, and indicates that any institution seeking to maintain reserves above the seven percent must have a plan approved by the Board.
      Committee Chair Chelseth moved that the Board of Trustees approve amendment of Board Policy 5.4, concerning MnSCU Systemwide and institutional reserves as contained in Attachment A. The Chancellor is directed to implement the reporting requirements effective with FY1999 budget preparation and reporting. Trustee Robert Erickson seconded and the motion carried without dissent.
   2. Revenue Fund FY1999 Spending Plan (Second Reading)
      Committee Chair Chelseth moved that the Board of Trustees approve the FY1999 spending plans and associated fees for residence hall/dining service and student union programs as outlined in attachments B and D (pages 84-90 of the meeting materials). Trustee Mohrenweiser seconded and the motion carried without dissent.
   3. Review of Delegation Principles
      Committee Chair Chelseth reported that the committee had a general discussion relative to the delegation principles.

   d. Audit Committee

   1. Follow-up Office of the Legislative Auditor's Information System Security Review
      Committee Chair Brataas reported that the committee received a follow-up report prepared by the Office of Internal Auditing on the status of findings from the Office of the Legislative Auditor Information System Security Review that was released in August of 1997. The Internal Auditing report showed that MnSCU information technology management has made significant progress in limiting access to critical business data, and implemented many security measures. A reorganization plan has been designed and the Board Operations Committee is considering a draft policy on information security as suggested by the Office of Internal Auditing.
      
   2. Proposal of FY1998 Information Systems Audit
      Committee Chair Brataas reported that the committee reviewed the results of a survey of 17 potential information technology audit topics. The top priorities are year 2000 compliance and student information systems.
   3. Audit Committee Training Program
      Committee Chair Brataas reported that the committee received a report on Audit Committee training, that included training objectives, the role of the Audit Committee and suggested audit topics.

   e. Personnel Policy Committee
   Committee Chair David Erickson reported that in addition to the two information items that were on the published agenda, the committee suspended the rules to take action on a third item, which to review the Chancellor's recommendation of Dr. Kenneth Peeders as president of Fergus Falls Community College. See the Chancellor's Report beginning on page two for more information.

   1. Administrative Salary Survey
      Committee Chair David Erickson reported that the committee reviewed administrative salary data.
   2. 403(b) Update
      Committee Chair David Erickson reported that the committee heard a report on the 403(b) retirement plan.

   f. Educational Policy Committee

   1. Program Approval: BA, Gerontology, Moorhead State University
      Committee Chair Fritsche moved that the Board of Trustees approve the request by Moorhead State University to offer a Bachelor of Arts Degree in Gerontology. Trustee David Erickson seconded and the motion carried without dissent.
   2. Program Approval: Multimedia Specialist, AAS, Hibbing Community College, A Community and Technical College
      Committee Chair Fritsche moved that the Board of Trustees approve the request by Hibbing Community College, a Technical and Community College, to offer an Associate in Applied Science in Multimedia Specialist. Trustee Williams seconded and the motion carried without dissent.
   3. Program Approval: Internet Media Technology, AAS and Diploma, Northwest Technical College and University of Minnesota - Crookston
      Committee Chair Fritsche reported that the committee made a technical amendment to the recommended motion, by including the words, "at the East Grand Forks campus.
      Committee Chair Fritsche moved that the Board of Trustees approve the request by Northwest Technical College to offer an Associate in Applied Science in Internet Media Technology and a diploma in Internet Media Technology, at the East Grand Forks campus. Trustee Williams seconded and the motion carried without dissent.
   4. Closure of Academic Programs: Mankato State University
      Committee Chair Fritsche moved that the Board of Trustees approve the request for program closures by Mankato State University. Trustee Wafler seconded and the motion carried without dissent.
   5. Policies (First Reading)
      • Proposed MnSCU Policy 3.21 Undergraduate Credit Transfer
        Committee Chair Fritsche reported that the committee reviewed a proposed policy on undergraduate credit transfer. Policy 3.21 will be an action item at the April meeting.
      • Proposed Amendment to MnSCU Policy 3.6 Student Conduct
        Committee Chair Fritsche reported that the committee had an extensive discussion on a proposed amendment to the student conduct policy. Policy 3.6 will be an action item at the April Board meeting.
   6. Academic Program Suspension- Mankato State University
      Committee Chair Fritsche reported that the master of business administration MBA program, Mankato State University, has been temporarily suspended, effective May 30, 1997. The program is being redesigned, with a projected reinstatement date of Fall Semester 2000.
   7. Academic Program Suspension - Moorhead State University
      Committee Chair Fritsche reported that four academic programs at Moorhead State University were placed in suspended status, based on budget reduction decisions made in FY95. Effective September 1997, the suspended programs are: 13.132500 French Language Teacher Education BS; 13.132600 German Language Teacher Education BS; 16.050100 German Language and Literature BA; 16.090100 French Language Literature and BA.
   8. Academic Excellence Report
      Committee Chair Fritsche reported that the Board of Trustees received corrected data relative to a report on academic excellence, by Dr. David O. Rafter to the Board of Trustees on October 22, 1997. The corrected data related to the patterns of students in the top 25 percent of their high school classes.
   9. International Education Conference, Stanley Foundation
      Committee Chair Fritsche reported that the Stanley Foundation is sponsoring an international education conference for MnSCU college administrators and faculty on October 8-9, 1998.
   10. Metro Plan Update
       Committee Chair Fritsche reported that Chancellor Anderson provided the committee with a progress report and timeline for the Metro Plan.

   g. Joint Fiscal Policy and Educational Policy Committees

   1. Tuition Policy Discussion
      Fiscal Policy Committee Chair Chelseth reported that the committee had a discussion relative to MnSCU's tuition policy. Staff was directed to prepare an analysis of the institutions' proposed tuition rates for the April Board meeting, with action scheduled for May.
   2. FY2000-FY2001 Allocation Model Development
      Fiscal Policy Committee Chair Chelseth reported that the committee had a general discussion relative to the allocation model development.
   3. FY2000-FY2001 Biennial Budget Development Timeline
      Fiscal Policy Committee Chair Chelseth reported that the committee had a general discussion relative to the biennial budget development and reviewed a budget timeline prepared by Vice Chancellor Laura M. King.

   h. Board Operations Committee

   1. Trustee Use of Computer Technology
      Committee Chair Dotson reported that the committee had a discussion relative to trustee use of computer technology. Staff distributed guidelines and policies on electronic mail and Internet policy.
   2. Work Plan
      Committee Chair Dotson reported that the committee reviewed 1998 goals and objectives that included a revision of chapter one policy manual, educational program for trustees, data resources for trustees, trustee office space, and policy development.
      
9. Requests by Individuals to Address the Board
   There were no requests to address the Board.
   
10. Other Business
    Chancellor Anderson commented that he received a letter from Roger Moe, Senate Majority Leader and Phil Carruthers, Speaker of the House regarding an issue in northwest Minnesota stemming from last year's devastating floods. Many farmers in northwestern Minnesota are unable to obtain normal bank loans to put crops in the field and assistance has been sought from the Federal Farm Service Agency, which has been overwhelmed with the number of applications. Senator Moe and Representative Carruthers have asked MnSCU to allow its farm business management instructors to assist the Federal Farm Service Agency with processing applications. Chancellor Anderson reported that Northland Community and Technical College's farm business instructors are assisting the Federal Farm Service Agency.
    
    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 2:07 p.m. Trustee Maxwell seconded. The motion carried without dissent.
    
    Trustee David Erickson moved to adjourn the closed session of the meeting and convene in open session at 2:35 p.m. Trustee Wafler seconded and the motion carried without dissent.
    
    Open Session
    Trustee David Erickson moved to approve the tentative agreement with Minnesota State University Association of Administrative Faculty (MSUAASF) as outlined in the summary dated February 20, 1998. Trustee Wafler seconded and the motion carried without dissent.
    
11. Adjournment

    Trustee Wafler moved adjournment of the open meeting. Trustee Maxwell seconded and the motion to adjourn carried at 2:38 p.m.

Michael Vekich, Chair
Recorded by Inge Chapin

-