December 2002
Board Meeting Minutes

Wednesday, December 18, 2002
World Trade Center
St. Paul, Minnesota

Trustees Present: Mary Choate, Chair, Will Antell, Andrew Boss, Daniel Coborn, Cheryl Dickson, Ivan Dusek, Clarence Hightower, Vincent Ijioma, Jim Luoma, Lew Moran, David Paskach, Ann Curme Shaw, and Shaun Williams

Absent: Robert Hoffman and Michael Redlinger

1. Call to Order
   Chair Mary Choate called the meeting to order at 10:48 a.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 October 16, 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 Meetings of November 6 and December 4, 2002
   Chair Choate reported that the Executive Committee met on November 6, 2002. There were no action items. The committee received a report on the board operating budget and the board chair budget for the first quarter of 2003. The committee discussed the plans for the November 18-20, 2002, Board of Trustees retreat. Chancellor McCormick reported on visits with legislators and business groups.
   
   The Executive Committee met again on December 4, 2002. There were no action items. The committee discussed the November Board of Trustees retreat and the upcoming February Board of Trustees retreat. Chancellor McCormick reported on the Work Plan progress.
   
   c. Other
   Chair Choate announced that invitations will be mailed this week for the Board of Trustees Annual Foundation Thank You Luncheon that will be held at 317 Rice Park, 317 North Washington Street in St. Paul, on Thursday, January 23, 2003.
   
   The Board of Trustees will meet in a retreat on February 19-20, 2003, to discuss the Board effectiveness and efficiency and performance indicators and measures. The Leadership Council members will be invited to participate in the Board discussion on February 19, 2003, from 9:00 a.m. to 4:00 p.m.
   
   The Board of Trustees will hold hearings on the FY 2004 Capital Budget Presentation on the following dates: Thursday, February 13, at Minnesota West Community and Technical College in Granite Falls from 9:30 a.m. to 3:30 p.m.; Friday, February 28, at St. Paul College from 9:00 a.m. to 3:00 p.m.; and Friday, March 7, at Bemidji State University from 9:00 a.m. to 3:00 p.m.
   

3. Trustee Reports
   Trustee Ivan Dusek reported his attendance at the MnSCU Morning meeting on December 12, 2002, coordinated by Dolores Fridge, Associate Vice Chancellor for Equal Opportunity and Diversity.
   
   Trustee Cheryl Dickson reported her attendance at the following campus visits: Lake Superior College on October 24, 2002; Rochester Community and Technical College on November 7, 2002; Saint Paul College on November 13, 2002; and St. Cloud State University on December 10, 2002.
   
   Trustee Vincent Ijioma reported his attendance at the following campuses: Minnesota State University, Mankato for a tour on November 9, 2002, Riverland Community and Technical College for the Minnesota State College Student Association (MSCSA) Governing Council meeting in Albert Lea, on November 15, 2002, and Minnesota West Community and Technical College in Worthington for the MSCSA Governing Council meeting on December 6, 2002.
   

4. Chancellor's Comments: James McCormick.
   Chancellor McCormick thanked the presidents, faculty, students and staff for welcoming the Board and staff on the visits to the following campuses: St. Cloud Technical College, Northland Community and Technical College, Lake Superior College, Rochester Community and Technical College, Saint Paul College, and St. Cloud State University. Chancellor McCormick thanked the Board of Trustees for their participation and commented that the campus visits provide the Board members with the opportunity to see how the work of the system is accomplished.
   
   Chancellor McCormick reported completing twenty-one corporate visits thus far, including recent visits with the following Chambers of Commerce: the Hmong Chamber, the Asian Chamber, the African American Chamber, and the Minnesota Chamber. He also met with Patricia Harvey, Superintendent of St. Paul Schools. Chancellor McCormick commented that these visits are very valuable, as they inform the business community of how well Minnesota State Colleges and Universities manages its public resources.
   
   Chancellor McCormick reported visiting with approximately thirty new legislators, and more visits are planned before the January Board of Trustees Meeting.
   
   Chancellor McCormick commented on the dedication of the Board. Chancellor McCormick stated that he appreciates the Board's commitment to continuous improvement and commented on the team-work of the Leadership Council, students and faculty, stating that many people are working together to get through this difficult time.
   
   Chancellor McCormick stated that several people have asked, "What will we do if the budget request is not funded?" Chancellor McCormick stated that the Minnesota State Colleges and Universities has its own governing Board that makes policy decisions and that the Board would set the priorities if the budget request is not funded. Until we know the impact, it would be difficult to specify a response. The system has a limited number of choices in dealing with the budget deficit, and the report from the independent auditing firm shows that the system is very well managed, but without great resources. Chancellor McCormick commented that there could be spending cuts, tuition increases and a need to focus on raising external resources, or a combination of these three.
   
   Chancellor McCormick stated that one of the most important jobs the Board does is select its managers: the Chancellor and the presidents. The Board will announce a new president of Fond du Lac Tribal and Community College today. Chancellor McCormick commented on the successful search process, chaired by Dr. Joseph Sertich, president of Northeast Higher Education District, and with the help of the Office of the Chancellor staff: William Tschida, Vice Chancellor for Human Resources, and Linda Skallman, Associate Vice Chancellor for Personnel.
   
   

5. Joint Council of Student Associations
   The following representatives of student associations addressed the Board of Trustees: Amy Sowada, Director of Communications, Minnesota State College Student Association (MSCSA); and Frank Viggiano, Executive Director, Minnesota State University Student Association (MSUSA).
   

6. Minnesota State Colleges and Universities' Bargaining Units
   The following representatives of the bargaining units addressed the Board of Trustees: Karen Foreman, President, American Federation of State, County and Municipal Employees' (AFSCME) Minnesota State Colleges and Universities Policy Committee; Jeanne Cornish, President, Minnesota State University Association of Administrative and Service Faculty (MSUAASF); and Jim Pehler, President, Inter Faculty Association (IFO).
   

7. Consent Agenda
   a. FY 2003 Capital Budget Proposal
   b. Mission Approval: Fergus Falls Community College
   c. Mission Revision: Pine Technical College
   d. Program Closure: Minnesota West Community and Technical College
   e. Audit Reports from Minnesota State Colleges and Universities External Auditors
   
   Trustee Boss 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, Andrew Boss, Chair

   1. *Winona State University Property Acquisition
      Committee Chair Andrew Boss moved that the Board of Trustees approves the acquisition of the Tau Center located adjacent to the West Campus, Winona State University. Vice Chair Jim Luoma seconded and the motion carried unanimously.

   2. *Resolution Authorizing Reimbursement from Revenue Fund Bond Proceeds
      Committee Chair Boss moved that the Board of Trustees approves the Resolution described in Attachment A which allows project costs initially funded by operating funds to be reimbursed with bond proceeds; and which delegates to the Vice Chancellor - Chief Financial Officer the authority to sign an Official Intent Declaration for inclusion in the official transcripts of a bond sale. Trustee Ann Curme Shaw seconded and the motion carried unanimously.
      
      
   3. *Amendment to Board Policy 5.10 Reserves and Year-end Balances (Second Reading)
      Committee Chair Boss moved that the Board of Trustees approves the amendment to Board Policy 5.10 Reserves and Year-End Balances. Trustee Curme Shaw seconded and the motion carried unanimously.
      
      
   4. Northland Community and Technical College Campus Master Plan
      Committee Chair Boss reported that President Orley Gunderson presented Northland Community and Technical College's Campus Master Plan.
      
      
   5. Accountability/Autonomy and Financial Aid Initiatives
      Committee Chair Boss reported that the committee reviewed the Accountability/Autonomy and Financial Aid Initiatives.
      
      

   b. Advancement Committee, Robert Hoffman, Chair

   1. Legislative Update
      Committee Chair Hoffman reported that the committee received a legislative update.
      
      
   2. *2003 Legislative Initiatives/Proposals
      Committee Chair Hoffman moved that the Board of Trustees approves the recommended initiatives and proposals and directs that the Board, through the Advancement Committee, be given regular progress reports on the status of these and other issues that may arise during the 2003 Legislative Session. Trustee Vincent Ijioma seconded and the motion carried unanimously.
      
      
   3. Public Affairs Update
      Committee Chair Hoffman reported that the committee received a marketing update by Linda Kohl, Associate Vice Chancellor for Public Affairs. The Northstar Foundation has changed its name to the Minnesota State Colleges and Universities Foundation.

   
   c. Educational Policy Committee, Will Antell, Chair
   Committee Vice Chair Luoma presented the committee report for Committee Chair Antell, who was delayed.

   1. Academic and Student Affairs Update
      Committee Vice Chair Luoma reported that the committee received an update on Academic and Student Affairs by Linda Baer, Senior Vice Chancellor for Academic and Student Affairs.
      
      
   2. Increasing College Opportunities to Underserved Populations: A Partnership between TRIO and Minnesota State Colleges and Universities
      Committee Vice Chair Luoma reported that the committee received a presentation on a partnership between TRIO and Minnesota State Colleges and Universities.
      
      
   3. Futures
      Vice Chair Luoma reported the committee discussed potential topics for Futures agenda items.
      
      
   4. Northwest Technical College Update
      Vice Chair Luoma reported that the committee received an update on Northwest Technical College from Presidents: Ken Peeders, Jon Quistgaard and Orley Gunderson along with Dr. Janet Gullickson, Provost, Northwest Technical College.
      
      
   5. Metropolitan Higher Education Consortium Update Report
      Committee Vice Chair Luoma reported that the committee heard a joint report on the Metropolitan Higher Education Consortium by Minnesota State Colleges and Universities and the University of Minnesota.

   
   d. Technology Committee, Lew Moran,Chair

   1. Security Update
      Committee Chair Moran reported that the committee received a security update report showing that the system now has one of the best security systems in the nation.
      
      
   2. Winona State University Laptop Program
      Committee Chair Moran reported that the committee heard a report on the Winona State University Laptop program.

   
   e. Audit Committee, Daniel Coborn, Chair

   1. *Additional Certified Public Accountant (CPA) Audits for FY 2003
      Committee Chair Coborn reported that the committee reviewed modifying the audit plan to conduct financial statement audits of colleges and universities.
      
      Trustee Dusek moved that the Board of Trustees approves the modification to the audit plan and authorizes the Executive Director of Internal Auditing to initiate the process of selecting Certified Public Accounting firms to conduct financial statement audits of Century Community & Technical College, Hennepin Technical College, Metropolitan State University, Minneapolis Community & Technical College, and Southwest State University. Trustee Clarence Hightower seconded and the motion carried unanimously.
      
      
   2. *Legislative Auditor Contract for FY 2003
      Committee Chair Coborn moved that the Board of Trustees approves using the Legislative Auditor to conduct institutional audits as part of the fiscal year 2003 audit plan. Trustee Boss seconded and the motion carried unanimously.
      
      
   3. Update on System-Level Accountability
      Committee Chair Coborn reported that the committee heard an update on the System-Level Accountability.

   
   F. Human Resources Policy Committee, Ivan Dusek, Chair

   1. Employment Agreements for Presidents and Vice Chancellors and Appointment of Vice Chancellor for Information Technology Committee
      Chair Dusek moved that the Board of Trustees authorizes the Chancellor, in consultation with the Chair of the Board of Trustees and Chair of the Human Resources Policy Committee, to negotiate employment agreements with presidents whose current contracts expire June 30, 2003; to authorize employment agreements with vice chancellors effective July 1, 2002; and to appoint Kenneth F. Niemi as Vice Chancellor for Information Technology. Trustee Boss seconded and the motion carried unanimously.
      
      
   2. Amendment to Policy 4.4, Weather/Emergency Closings (Second Reading)
      Committee Chair Dusek moved that the Board of Trustees approves the recommended revisions to Policy 4.4 Weather/Emergency Closings. Vice Chair Luoma seconded and the motion carried unanimously.
      
      
   3. Appointment of President of Fond du Lac Tribal and Community College
      Chancellor McCormick reported that Minnesota State Colleges and Universities conducted a national search for the president of Fond du Lac Tribal and Community College. Chancellor McCormick, along with members of the Board of Trustees and Cabinet members from the Office of the Chancellor, interviewed three finalists.
      
      Chancellor McCormick announced that he is pleased to recommend Dr. Donald R. Day for the presidency of Fond du Lac Tribal and Community College. Dr. Day is currently serving as Director of the American Indian Center at St. Cloud State University. He is a graduate of Bemidji State University with a Bachelor of Arts degree. He holds a Master of Education degree in Educational Administration from the University of Minnesota Duluth, and the Doctorate of Education from the University of North Dakota.
      
      Committee Chair Dusek moved that the Board of Trustees, upon the recommendation of Chancellor McCormick, appoints Dr. Donald R. Day as president of Fond du Lac Tribal and Community College effective January 6, 2003, subject to the completion of an employment contract, which the Board authorizes the Chancellor to negotiate in consultation with the Chair of the Board and Chair of Human Resources Policy Committee in accordance with the terms and conditions of the Personnel Plan for MnSCU Administrators. Trustee Ijioma seconded and the motion carried unanimously.
      
      Dr. Day thanked the Board of Trustees and Chancellor McCormick, stating that he is honored to accept the position of president of Fond du Lac Tribal and Community College.
      
      

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

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

11. Adjournment
    Chair Choate adjourned the meeting by consensus at 11:52 a.m.