April 2002
Board Meeting Minutes

Wednesday, April 17, 2002
World Trade Center
St. Paul, Minnesota

Trustees Present: Mary Choate, Chair, Will Antell, Andrew Boss, Nancy Brataas, Daniel Coborn, Dennis Dotson, Ivan Dusek, Robert Erickson, Jim A. Luoma, Lew Moran, Michael Redlinger, Joann Splonskowski, Joseph Swanson

Absent: Bob Hoffman, Michael Vekich

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1. Call to Order
   Chair Mary Choate called the meeting to order at 1:10 p.m. and reported that a quorum was present. There were no changes to the agenda.
   

2. Chair's Report

   a. Minutes of the Board of Trustees Meeting of March 20, 2002
   As there were no corrections or additions to the minutes, Chair Choate announced that the minutes stand approved as written.
   b. Report of the Executive Committee Meeting of April 3, 2002
   As Chair Choate was absent from the Executive Committee meeting on April 3, Vice Chair Luoma reported that no official action was taken at the meeting. The Executive Committee reviewed the proposed fiscal year 2003 meeting calendar. The calendar will be reviewed over the next two months and approved at the annual meeting of the Board in July. Chancellor McCormick provided an update on his activities since the last Board meeting, including the Citizens Advisory Commission Report and his plans to visit 17 campuses in the upcoming year.
   
   On May 1, the Executive Committee will meet at Inver Hills Community College at 8:30 a.m., followed at 11:00 a.m. by a public hearing on the FY 2003 operating budget including tuition and fees. Another public hearing will be held at Ridgewater College in Willmar on May 2 at 1:00 p.m.
   c. Other
   Chair Choate thanked Vance Opperman and Glen Taylor, the Co-Chairs of the Citizens Advisory Commission and its members for the report they submitted to Chancellor McCormick on April 16.
   

3. Trustee Reports
   Trustee Dusek announced that he attended the dedication of the new buildings at Ridgewater College in Hutchinson on April 11.
   
   Trustee Antell reported that he is attending an event at St. Cloud State University that will address the issue of mascots from an educational point of view. Representatives from Bemidji State University, Minnesota State University Mankato, University of Minnesota, University of Minnesota, Duluth and the University of North Dakota will be at the event on April 19. Trustee Antell invited other Trustees to attend the meeting.
   
   Trustee Boss reported that he and Linda Baer, Senior Vice Chancellor for Academic and Student Affairs, attended the last matriculation ceremony at MSU - Akita on April 7. They spent two days in Akita and were very well received by Akita Prefecture Governor Sukeshiro Terata and Provost Don Nilson. Trustee Boss expressed that he was very moved by the ceremony because he also attended MSU - Akita's first matriculation ceremony in 1990. Trustee Boss noted that there were 16 students from Minnesota among this spring's graduating class.
   

4. Chancellor's Comments: James McCormick.
   a. Chancellor's Quarterly Report
   Chancellor McCormick announced that the quarterly report for the period ending March 31, 2002 was distributed. He thanked the Presidents and his staff for their good work on keeping the work plan in focus.
   
   Chancellor McCormick reviewed the quarterly report and announced that he is confident in achieving the overall objectives in the work plan. A number of work plan goals have been completed, including official visits to all 53 campuses. MnSCU has conducted 45 community forums, far surpassing the original goal of 6 forums. More than 2,000 people attended the community forums all across Minnesota, and another 4,000 faculty, staff and students attended additional forums to discuss the progress of the organization. Chancellor McCormick thanked the presidents for their support and encouragement of the community forums. He also thanked Frank Viggiano, Executive Director, Minnesota State University Student Association, and Brent Glass, Executive Director, Minnesota State College Student Association, for encouraging student leadership to participate in the forums.
   
   Minnesota State Colleges and Universities has completed and submitted its first legislative accountability report, which was required by the Legislature. This report will be a baseline document for future reports and is serving as an accountability component of the strategic plan. MnSCU has also completed its first financial statement audit with an unqualified opinion. In addition, MnSCU is making significant progress on other goals, including making it easier for students to transfer, reaching out to groups traditionally underrepresented in higher education, and insuring the reliability and validity of our data.
   
   Chancellor McCormick reported that he recently attended a meeting of the Higher Learning Commission, of the North Central Association. He acknowledged that MnSCU's faculty and staff have a significant presence as leaders and presenters with this body.
   
   The Citizens Advisory Commission has completed its work and issued a report. Chancellor McCormick noted that he is pleased with the quality of the Commission's work. The report will be used as an important resource to draft the strategic plan for the next three years. Chancellor McCormick remarked that the Office of the Chancellor staff also has been working to help shape the strategic plan. A preliminary draft of the strategic plan will be presented to the Board of Trustees in May. Senior Vice Chancellor Linda Baer, and Associate Vice Chancellor Leslie Mercer will be available to provide members of the Board of Trustees with personal briefings on the draft strategic plan. After the draft strategic plan is presented in May, public input, and additional involvement with the Leadership Council, and others, will be sought and incorporated into the plan. The Board of Trustees will act on the strategic plan in June. Chancellor McCormick announced that in late May and June, he would visit with each Trustee about their thoughts and suggestions on the plan. In addition, Chancellor McCormick hopes to join Chair Mary Choate to visit with new members of the Board as soon as the Governor has announced their appointments.
   
   On another matter, Chancellor McCormick reported that Northwest Technical College President Ron Swanson intends to step down as president when his contract expires on June 30, 2002. For the record, Chancellor McCormick read President Swanson's resignation letter, dated April 17, 2002 (the letter is addressed to Chancellor McCormick):
   
   

   I am writing to inform you that I will step down as President of Northwest Technical College when my current contract ends on June 30. I am proud of what we have accomplished during my time at the college, including reversing deficit spending and declining enrollments, obtaining nearly $7 million for construction, obtaining our ten-year North Central Association accreditation, and initiating the process for developing our master academic plan, using the NCA's academic quality improvement project criteria as a framework. Thank you for your support over the past months. I wish you well in your new position.
   
   Very respectively.
   President Swanson

   Chancellor McCormick thanked President Swanson for his service to Northwest Technical College and to MnSCU. Chancellor McCormick indicated that he would review and explore all options for the future well being of Northwest Technical College.
   

5. Joint Council of Student Associations
   The following representatives of student associations addressed the Board of Trustees: Brad Krasaway, President, Minnesota State College Student Association (MSCSA), Tyler Despins, State Legislative Affairs Committee Coordinator, and Frank Viggiano, Executive Director, Minnesota State University Student Association (MSUSA).
   

6. MnSCU Bargaining Units
   The following representatives of MnSCU bargaining units addressed the Board of Trustees: Edward Schones, Co-President, Minnesota State College Faculty, Karen Foreman, President, AFSCME's Minnesota State Colleges and Universities Policy Committee, and Jim Pehler, president, Inter Faculty Association.
   

7. Consent Agenda
   a. Winona State University Land Acquisition (Second Reading)
   b. Program Closures: St. Paul Technical College
   
   Trustee Moran moved approval of the Consent Agenda. Trustee Dusek seconded and the Consent Agenda was approved unanimously.
   

8. Board Standing Committee Reports

   a. Finance/Facilities Policy Committee, Robert Erickson, Chair

   1. FY 2001 Instructional Cost Study
      Committee Chair Erickson reported that the committee reviewed the FY 2001 Instructional Cost Study.

   2. Allocation Framework Illustration
      Committee Chair Erickson reported that the committee reviewed the Allocation Framework Illustration.

   3. FY 2002 Annual Fee Report
      Committee Chair Erickson reported that the committee reviewed the FY 2002 Annual Fee Report.

   4. FY 2002 Quarterly College and University Operating Budget Update
      Committee Chair Erickson reported that the committee reviewed the FY 2002 Quarterly College and University Operating Budget Update.

   5. Normandale Community College Building Renovation Project, Schematic Design (First Reading)
      Committee Chair Erickson reported that the committee reviewed Normandale Community College's Building Renovation Project, Schematic Design as a first reading. This will be an action item at the May Board meeting.

   6. Alexandria Technical College - Campus Master Plan
      Committee Chair Erickson reported that the committee reviewed Alexandria Technical College's Campus Master Plan.

   7. FY 2003 Operating Budget Including Tuition and Fees (First Reading) Committee Chair Erickson reported that the committee reviewed the FY 2003 Operating Budget Including Tuition and Fees. Two public hearings have been scheduled for comment: one is at Inver Hills Community College on May 1, and another at Ridgewater College in Willmar on May 2.

   b. Personnel Policy Committee, Nancy Brataas Chair

   1. *Inter Faculty Organization Contract Approval
      Chris Dale, System Director, for Labor Relations, summarized the provisions and bargaining issues in the Inter Faculty Organization contract that was settled on March 21, 2002.
      
      Committee Chair Brataas moved that the Board of Trustees approves the terms of the 2001-2003 labor agreement with the Inter Faculty Organization (IFO), and authorizes the Chancellor to sign the agreement on behalf of the Board. Trustee Erickson seconded and the motion carried with one dissent (Trustee Swanson).
   2. Proposed Amendment to Policy 4.2, Appointment of Presidents (First Reading)
      Committee Chair Brataas reported that this item was postponed pending further review.
   3. Proposed Amendment to Policy 1A.2, part 5, Subpart C. Personnel Policy Committee (First Reading)
      Committee Chair Brataas moved to suspend the rules to allow a second reading of the Proposed Amendment to Policy 1A.2, part 5, Subpart C. Personnel Policy Committee. Trustee Luoma seconded and the motion carried unanimously. Committee Chair Brataas moved that the Board of Trustees approves the amendment to Policy 1A.2, Part 5, Subpart C. Personnel Policy Committee. Trustee Luoma seconded and the motion carried unanimously.
      
      This amendment changes the name of the Personnel Policy Committee to the Human Resources Committee, effective immediately.
   4. Sabbatical Report for FY 2001
      Gary Langer, Associate Vice Chancellor, presented the Sabbatical Report for FY 2001.
   5. Demographic Report
      Bill Tschida, Vice Chancellor, Human Resources, presented the 2002 Demographic Report, which included a summary of faculty and student ethnicity.
      
      

   c. Educational Policy Committee, Robert Hoffman, Chair

   1. Academic and Student Affairs Update
      Linda Baer, Senior Vice Chancellor for Academic and Student Affairs, reported that Inver Hills Community College was the recipient of a National Council of Instructional Administrators Exemplary Award. Senior Vice Chancellor Baer also reported on recently held and upcoming MnSCU conferences.
   2. Progress Report: Responding to the Office of Internal Auditing Post- Secondary Enrollment Options Report
      Committee Vice Chair Luoma reported that the committee had a discussion on post-secondary enrollment options.
   3. Proposed Policy 3.28 Charter School Sponsorship (First Reading)
      Committee Vice Chair Luoma reported that the committee reviewed a first reading of Proposed Policy 3.28 Charter School Sponsorship. This will be an action item at the May Board meeting.
   4. Proposed Amendment to Policy 3.22 Course Syllabi (First Reading)
      Committee Vice Chair Luoma moved to suspend the rules in order to allow a second reading of a proposed amendment to Policy 3.22 Course Syllabi. Trustee Erickson seconded and the motion carried, with two dissenting votes (Trustees Antell and Splonskowski). Committee Vice Chair Luoma moved that the Board of Trustees approves the amendment to Policy 3.22 Course Syllabi. Trustee Erickson seconded.
      
      During discussion, several Trustees commented that they were uncomfortable with approving policies after only one reading. They expressed that they preferred that policies undergo two readings in order to provide sufficient time for consideration and input prior to approval.
      
      Committee Vice Chair Luoma announced that the committee did not formally act on the amendment yesterday, and he withdrew his motion with the approval of Trustee Erickson, who had seconded the motion. Committee Vice Chair Luoma commented that amendment to Policy 3.22 Course Syllabi is still under review and will be presented for a second reading at a future date.
      
      
   5. Proposed Amendment to Policy 3.12 Academic Program Suspension and Reinstatement (First Reading)
      Committee Vice Chair Luoma moved to suspend the rules to allow a second reading of the proposed amendment to Policy 3.12 Academic Program and Suspension. Trustee Erickson seconded and the motion carried with two dissenting votes (Trustees Antell and Splonskowski). Committee Vice Chair Luoma moved that the Board of Trustees approves the amendment to Policy 3.12 Academic Program Suspension and Reinstatement. Trustee Erickson seconded and the motion carried with two dissenting votes (Trustees Antell and Splonskowski).
   6. Proposed Amendment to Policy 3.13 Academic Program Closure (First Reading)
      Committee Vice Chair Luoma reported that due to time constraints the proposed amendment to Policy 3.13 Academic Program Closure was delayed until the May meeting.
      
      

   d. Advancement Committee, Lew Moran, Chair

   1. Legislative Session 2002 Update
      Committee Chair Moran reported that the committee received an update on the Legislative Session.

   2. Development Update
      Committee Chair Moran reported that Lee Hansen, Chair of the Northstar Foundation, and Peggy Boots, MnSCU Director provided the committee with an update on development activities.

   3. 2002-2003 Marketing Plan
      Committee Chair Moran reported that Linda Kohl, Associate Vice Chancellor for Public Affairs, provided an update on the marketing plan.

   4. Internal Marketing
      Committee Chair Moran reported that the committee heard an update on internal marketing.

   5. Naming Policy Update
      Committee Chair Moran reported that the committee heard an update on the naming policy.

   e. Audit Committee, Daniel Coborn, Chair

   1. Appointment of External Auditors for Bemidji State University, Minnesota State University, Mankato, Minnesota State University Moorhead, Northwest Technical College, St. Cloud State University, and Winona State University
      Committee Chair Coborn moved that the Board of Trustees approves the appointment of two public accounting firms, Larson, Allen, Weishair & Co., LLP, and Kern, DeWenter, Viere, Ltd., to serve as external auditors for Minnesota State Colleges and Universities. The firm of Larson, Allen Weishair & Co., LLP, will serve as external auditor for Minnesota State University, Mankato, St. Cloud State University and Winona State University. The firm of Kern, DeWenter, Viere, Ltd. will serve as external auditor for Bemidji State University, Minnesota State University Moorhead, and Northwest Technical College. The scope of these audit services shall include an annual audit of the general financial statements of the above mentioned colleges and universities. The term of this appointment begins upon execution of contracts and shall continue to fulfill external auditing needs for the three fiscal years from June 30, 2002 through 2004.
      
      The Board of Trustees authorizes the Executive Director of Internal Auditing and the Vice Chancellor/Chief Financial Officer to negotiate contracts with Larson, Allen, Weishair & Co., LLP, consistent with the terms contained in its proposal dated February 27, 2002, and Kern, DeWenter, Viere, Ltd., consistent with the terms contained in its proposal dated February 25, 2002. Trustee Erickson seconded and the motion carried unanimously.
      

   2. Periodic Follow-up of Prior Audit Recommendations
      Committee Chair Coborn reported that the committee reviewed prior audit recommendations.

   3. Preliminary Report on Internal Auditing Study on Board-Level Indicators
      Committee Chair Coborn reported that the committee heard a preliminary report on Board-level indicators.
      

9. Requests by Individuals to Address the Board
   There were no requests by individuals to address the Board.
   

10. Other Business
    There was no other business to come before the Board.

11. Adjournment
    Chair Choate adjourned the meeting by consensus at 2:18 p.m.
    

Recorded by Penny Harris Reynen

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