July 1999
Board Meeting Minutes

Board of Trustees Meeting Minutes
Wednesday, July 21, 1999
World Trade Center
Saint Paul, Minnesota

Trustees Present: Andrew Boss, Nancy Brataas, Kathleen Caffey, Mary Choate, Daniel G. Coborn, Dennis Dotson, David Erickson, Robert Erickson, Christine Fritsche, Jim A. Luoma, Michael Nesdahl, James Wafler, Michael Vekich

Trustees Absent: Archie D. Chelseth, James Wafler

1. Call to Order
   Chair Vekich reported that the Board of Trustees met in closed session at 11:00 AM today to discuss Chancellor evaluation.
   
   Trustee Robert Erickson moved to recess the closed session of the Board of Trustees and convene in open session. Trustee Brataas seconded and the motion carried without dissent.
   
   The Board will reconvene in closed session after the Board of Trustees meeting. Chair Vekich called the meeting to order at 1:15 PM, and announced that a quorum was present. There were no changes to the agenda.
   
   
2. Chair's Report

   a. Approval of June 16, 1999, Meeting Minutes
   Trustee Robert Erickson moved approval of the June 16, 1999, meeting minutes. Trustee Fritsche seconded. The minutes were approved without dissent.

   b. Election of Secretary
   Chair Vekich reported that the Board has hired an executive director/board secretary, Robert J. McFarlin, who will begin his duties on August 2, 1999. Trustee Wafler submitted his resignation as secretary, effective August 2, 1999.

   Trustee Brataas nominated Robert J. McFarlin to serve as secretary, effective August 2, 1999. Trustee Robert Erickson seconded and the motion carried without dissent.
   
   c. Election of Officers at Annual Meeting on September 22, 1999
   Chair Vekich declared his candidacy for Chair. Trustee Robert Erickson declared his candidacy as vice-chair. Trustee Brataas declared her candidacy for treasurer. Chair Vekich announced that Robert J. McFarlin will run for secretary.
   
   d. Draft Board of Trustees Meeting Calendar for 1999-2000
   Chair Vekich reported that the 1999-2000 calendar will be approved at the September Board of Trustees meeting. Board retreats are scheduled to follow the Executive Committee meetings on October 6, November 3, and December 1.

   e. Report of the Executive Committee, July 7, 1999
   Chair Vekich reported that the Executive Committee met on July 7.

   f. Other
   Trustee Robert Erickson announced that Chair Vekich has asked that he, along with Trustees Dotson and Wafler, organize the Open Forum sessions. The first Open Forum will be held on September 21. Presidents Nelson (Lake Superior College), Frank (Inver Hills Community College), Thompson (Ridgewater College), Peeders (Fergus Falls Community College) and Nielsen (Metropolitan State University) volunteered to serve on a subgroup that will plan the agendas for the three Open Forums following the September meeting.

   Chair Vekich urged Board members to register for the annual Association of Community College Trustees in Atlanta on October 13-16, 1999. Chair Vekich reported that he has declared his candidacy to serve on the ACCT Board.

   Chair Vekich recognized Minneapolis Community and Technical College, Inver Hills Community College and Metropolitan State University for their collaboration in the Urban Teacher Education Program.
   

3. Trustee Reportee
   There were no Trustee reports.
   
   
4. Chancellor's Report: Morris J. Anderson.
   Chancellor Anderson announced the appointment of Michael Murphy, Ph.D. as associate vice chancellor for partnership development innovation and executive director of the corporate university. Dr. Murphy is from the University of St. Thomas where he served as director of the Minneapolis Campus.
   
   Dr. Linda Baer, senior vice chancellor for academic and student affairs, announced that MnSCU received a $1.6 million grant from the Bush Foundation. This is the largest grant the Bush Foundation has ever awarded in one-time money and is for faculty to become more familiar with learning by doing or active learning, assessing and evaluating curriculum and developing technology-based curriculum. MnSCU also received two other awards over the past month: $360,000 from Microsoft in a program called Integrating Technology into Today's Classroom, and a continuation grant from the Kellogg Foundation.
   
   President Shellito, Alexandria Technical College, has agreed to chair the recently activated Task Force on the System Office budget.
   
   
5. Joint Council of Student Associations
   The following representatives of student associations addressed the Board of Trustees: Minnesota State University Student Association (MSUSA): Ryan Kulikowski, state chair, Adam Zoebel, vice chair, Elspeth Howe, associate director of university and government relations, Frank X. Viggiano, executive director. Mr. Viggiano and Ms. Howe distributed and reviewed a report on MnSCU Policy 3.6 Student Conduct. Chair Vekich referred the report to the Educational Policy Committee.
   
   Robin Melin, director, special projects, and Brent Glass, executive director, Minnesota State College Student Association (MSCSA) also addressed the Board.
   
   
6. MCCFA, IFO, and UTCE: Joint Opportunity to Address the Board
   Ed Schoenes, president, United Technical College Educators, addressed the Board of Trustees.
   
7. Board Standing Committee Reports
   
   a. Finance/Facilities Policy Committee
   1. Metropolitan State University - Library Schematic Design
      Committee Vice Chair Coborn moved that the Board of Trustees approve the schematic design for the Metropolitan State University Community Library and Information Access Center as presented. Trustee Robert Erickson seconded and the motion carried without dissent.
   2. Two-Year Student Housing Guidelines
      Committee Vice Chair Coborn reported that the committee deferred taking action on the Two-Year Student Housing Guidelines until a later date.
   3. Laurentian District/Vermilion Community College Student Housing Refinancing
      Committee Vice Chair Coborn reported that the committee recommended that the Board suspend the rules in order to take action on agenda items three through six. See agenda item 6.
   4. Demolition of Neumaier Hall, Moorhead State University
      See agenda item 6.
   5. University Center Rochester Field House Schematic Design
      See agenda item 6.
   6. Ridgewater College, Hutchinson Campus Building Addition
      See agenda item 6.
      Committee Vice Chair Coborn moved that the Board of Trustees suspend the rules of Board Policy 1A.1, part 6, subpart b to allow the Board to take action on agenda items three through six. Trustee Robert Erickson seconded and the motion carried without dissent.
      
      Committee Vice Chair Coborn moved that the Board of Trustees: (3) approves the refinancing of Vermilion Community College's HEFA bonds as presented; (4) authorizes the demolition of Neumaier Hall at Moorhead State University, (5) approves the schematic design of the University Center Rochester Regional Recreation and Sports Center as presented, subject to the City of Rochester contributing a total of $8,900,000 towards the project; and (6) approves the schematic design of Ridgewater College, Hutchinson Campus addition and remodeling project as presented. Trustee Luoma seconded and the motion carried without dissent.
   7. FY 2000-2001 Operating Budgets Including Tuition and Fees
      Scott Sirek, president, Bemidji State University Student Senate, Ryan Kulikowski, state chair, Minnesota State University Student Association, and Terry Melcher, student, Bemidji State University spoke in opposition to the proposed FY 2000 tuition rate at Bemidji State University.
      
      President Bensen, Bemidji State University, explained the rationale for the proposed FY 2000 tuition rate.
      
      Committee Chair Robert Erickson moved that the Board of Trustees approves the following (July Board packet page 114):
      
      1. The initial allocation of state appropriations for Minnesota State Colleges and Universities for FY2000 totaling $546,997,000 as detailed on Attachment N, column A (July Board packet page 133), effective July 1, 1999. The funds for the ITS consultants and academic software cannot be expended until the Board has reviewed and approved the ITS strategic plan.
      
      

      2. The Minnesota State Colleges and Universities proposed tuition recommendations for FY2000 as detailed on Attachments Q2-5 (July Board packet pp. 154-157):
      

      · Q-2 - Resident Undergraduate per Credit Rates
      

      · Q-3 - Resident Graduate per Credit Rates
      

      · Q-4 - Resident Undergraduate Banded per Credit Rates
      

      · Q-5 - Resident Undergraduate Program/Course per Credit Rates
      

      
      The percent increase on the resident tuition rates in Attachments Q2-5 also applies to other tuition rates charged by the institution not impacted by reciprocity agreements such as non-resident rates. The tuition increase is effective Fall Semester, 1999. The Board continues the policy of market-driven tuition for customized training, continuing education, distance learning and contract Postsecondary enrollment programs.
      
      3. Pilot programs at Bemidji State University, Minnesota West Community and
      Technical College, Red Wing/Winona Technical College, Riverland Community and Technical College, and St. Cloud State University to allow expanded tuition waiver authority as defined in Attachment R (July Board packet packet pp. 159-167), effective Fall Semester, 1999.
      
      4. An increase in the technology fee maximum to $8.00 per semester credit
      in FY2000 as shown on Attachment S (July Board packet page 168), effective Fall Semester, 1999.
      
      The Chancellor is directed to provide an update after conclusion of the fall enrollment period and establishment of final allocations and detailed budgets. In addition, the Board requests that the FY2001 allocation, tuition and budget recommendations be presented at the November and December, 1999 scheduled Board meetings.
      
      The Board also requests the development of an annual report on tuition waivers throughout the system and directs the Allocation Implementation Committee to examine the effects of waivers on the MnSCU allocation framework.
      Trustee Luoma seconded the motion.
      
      Trustee Nesdahl spoke in opposition to the motion, particularly the tuition increases of 12 and 19 percent.
      
      The motion carried with Trustees Nesdahl and Caffey dissenting.
      

   8. Minnesota State College Student Association FY 2000 Fee Proposal
      Committee Chair Robert Erickson moved that the Board of Trustees endorses the increase of the Minnesota State College Student Association fee to $.25 per semester credit and requests that the MSCSA provide the Board with its forthcoming 3-5 years strategic plan and indicators for measuring progress in attaining organizational and legislative goals for purposes of increased communication and stronger coordination. Trustee Luoma seconded and the motion carried without dissent
      
   9. Approval to Accept Gifts to Anoka-Hennepin Technical College
      Committee Chair Robert Erickson moved that the Board of Trustees approve the two gifts, one for $280,000 and one for $50,000, from the Anoka-Hennepin Technical College Foundation. Trustee David Erickson seconded and the motion carried without dissent.
      
   10. Minnesota State Colleges and Universities Allocation Framework Update
       Committee Chair Robert Erickson reported that the Allocation Framework will be on the September Board meeting agenda.
       

   b. Personnel Policy Committee
   Committee Chair Brataas reported that the committee met in closed session to discuss presidential evaluations.

   1. Student Employees Policy
      Committee Chair Brataas moved that the Board of Trustees approve amendments to board policy 4.5, Student Employees. Trustee Choate seconded and the motion carried without dissent.
   2. Appointment of President of Ridgewater College
      Committee Chair Brataas moved that the Board of Trustees approve the appointment of Colleen Thompson as president of Ridgewater College effective immediately, under the terms and conditions of the Personnel Plan for MnSCU Administrators. Trustee Fritsche seconded and the motion carried without dissent.
      
      Ms. Thompson has been serving as interim president of Ridgewater College since 1998. She has been with Ridgewater College since 1970. Ms. Thompson has a Master of Arts in Oral and Written Communication Studies from St. Cloud State University, a Master of Science in Higher Educational Administration Leadership from St. Cloud State University, and a Bachelor of Arts in Speech and Theatre from the College of St. Catherine.
      
   3. Appointment of President of Dakota County Technical College
      Committee Chair Brataas moved that the Board of Trustees approve the appointment of Dr. Ronald E. Thomas as president of Dakota County Technical College effective September 1, 1999, under the terms and conditions of the Personnel Plan for MnSCU Administrators. Trustee Robert Erickson seconded and the motion carried without dissent.
      
      Dr. Thomas has a Ph.D. in education from Southern Illinois University at Carbondale, a masters degree guidance from Southern Illinois University at Edwardsville, and a bachelor of science degree in social science and physical education from Northeast Missouri State at Kirksville.
      
   4. Appointment of MnSCU General Counsel
      Committee Chair Brataas moved that the Board of Trustees approves the establishment of the MnSCU Office of General Counsel and appointed Gail Olson as General Counsel to MnSCU, effective July 12, 1999, under the terms and conditions of the Personnel Plan for MnSCU. Trustee Robert Erickson seconded and the motion carried without dissent.
      
   5. Discussion of Interim Appointments
      Committee Chair Brataas reported that the committee reviewed the current policy relative to interim appointments of presidents.
      

   c. Educational Policy Committee

   1. Proposed Amendment to MnSCU Policy 2.2 Residency
      Committee Vice Chair Fritsche moved that the Board of Trustees suspend the rules of Board Policy 1A.1, part 6, subpart b to allow the Board to take action on the amendment to Policy 2.2 Residency. Trustee Robert Erickson seconded and the motion carried without dissent.
      Committee Vice Chair Fritsche moved that the Board of Trustees approve the amendment to MnSCU Policy 2.2 Residency. Trustee Nesdahl seconded and the motion carried without dissent.
      
   2. Program Approval: Certificate, Foundations of Corrections and Certificate, Focus in Corrections, Lake Superior College, Duluth
      See agenda item 4.
      
   3. Program Approval: Certificate, Agricultural Commodities Marketing, Northland Community and Technical College, Thief River Falls
      See agenda item 4.
      
   4. Program Closures: Riverland Community College, Albert Lea and Austin
      Committee Vice Chair Fritsche moved that the Board of Trustees approve the Certificate, Foundations of Corrections and Certificate, Focus in Corrections, Lake Superior College, Duluth; Certificate, Agricultural Commodities Marketing, Northland Community and Technical College, Thief River Falls; and Program Closures: Riverland Community College, Albert Lea and Austin. Trustee David Erickson seconded and the motion carried without dissent.
      
   5. Program Suspensions: Dakota County Technical College and Minnesota West Community and Technical College
      Committee Vice Chair Fritsche reported that the committee reviewed program suspensions at Dakota County Technical College and Minnesota West Community and Technical College.
      
   6. Program Reinstatements: Riverland Community College
      Committee Vice Chair Fritsche reported that the committee reviewed program reinstatements at Riverland Community College.
      
   7. MnSCU Task Force on Intellectual Property
      Committee Vice Chair Fritsche reported that the committee heard an update on the MnSCU Task Force on Intellectual Property.
      
   8. Honorary Degree Policy 3.18
      Committee Vice Chair Fritsche reported that the committee reviewed the Honorary Degree Policy 3.18.
      
   9. Draft Report Twin Cities Metropolitan Area Planning
      Committee Vice Chair Fritsche reported that the committee reviewed a draft report of the Twin Cities Metropolitan Area Planning. A final report will be presented at the September Board meeting.
      
   10. Northeast Higher Education District Planning
       Committee Vice Chair Fritsche reported there was a presentation on the Northeast Higher Education District Planning.
       
       

   d. Audit Committee

   1. Report on Potential Cost and Efforts of Audited Financial Statements
      Committee Chair Boss moved that the Board of Trustees, in exercising its fiduciary responsibilities, approved the following steps toward attainment of audited MnSCU and institutional financial statements:
      
      1. Prepare unaudited consolidating financial statements for the fiscal year ended
      June 30, 1999 for the Minnesota State Colleges and Universities by November 30, 1999. These financial statements should include, at a minimum, a balance sheet and statement of revenues and expenditures by institution.
      2. Preparation by the administration of appropriate FY2000 MnSCU-wide
      financial statements, including plant fund statements.
      3. Contract with the Office of the Legislative Auditor (OLA) for examination of
      the FY2000 balance sheet.
      4. Preparation by the administration of MnSCU-wide FY2001 financial
      statements.
      5. Contract with the OLA for the audit of MnSCU-wide financial statements for
      FY2001.
      6. Preparation of a plan for obtaining audited financial statements at the
      institutional level for FY2002.
      7. Directs the Chancellor to incorporate the estimated cost of these efforts in the
      FY2000 and FY2001 budget planning.
      Trustee Fritsche seconded and the motion carried without dissent.
      
   2. Office of the Legislative Auditor Financial Audits of Century Community and Technical College, Hennepin Technical College, and Northwest Technical College
      Committee Chair Boss moved that the Board of Trustees accept the Office of the Legislative Auditor financial audit reports of Century Community and Technical College, Hennepin Technical College, and Northwest Technical College. Trustee David Erickson seconded and the motion carried without dissent.
   3. Set Priorities for Systemwide Internal Auditing Proposals for FY 2000
      Committee Chair Boss reported that the committee reviewed priorities for Systemwide Internal Auditing Proposals for FY2000.
   4. Follow-up Activity Report: Second Quarter 1999
      Committee Chair Boss reported that the committee reviewed a follow-up activity report for second quarter 1999.
   5. Policy and Procedures for Reporting and Investigating Potential Fraud
      Committee Chair Boss reported that the committee reviewed procedures and policy for reporting and investigating potential fraud.
   6. Update on Reliability of MnSCU Financial Data: Status of Bank Reconciliations
      Committee Chair Boss reported that the committee heard an update on the status of bank reconciliations.
   7. Student Information System Update
      Committee Chair Boss reported that the committee received an update on the Student Information System.
   8. Year 2000 Update
      Committee Chair Boss reported that the committee received an update on the Year 2000.
      
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.
   
10. Closed Session and Adjournment
    Trustee Wafler moved to close the open session of the meeting and to reconvene at 3:30 PM in the Third Floor Executive Conference room in closed session to continue the evaluation of the Chancellor. Trustee Caffey seconded and the motion carried.
    
    Trustee Wafler moved to adjourn the closed session of the Board of Trustees and to meet in open session at 4:50 PM. Trustee Fritsche seconded and the motion carried.
    
    Chair Vekich adjourned the meeting by consensus at 4:50 PM