April 2004 Board Meeting
Board Meeting Minutes

Wednesday, April 27, 2004
Wells Fargo Place
St. Paul, Minnesota

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

Absent: Mary Choate and Robert Hoffman

1. Call to Order:

   Chair Jim Luoma called the meeting to order at 1:05 p.m.

2. Chair's Report
1. Minutes of Board of Trustees Meeting of March 17, 2004

   As there were no corrections to the minutes, Chair Luoma announced that the minutes stand approved as written.

2. Draft Minutes of Executive Committee Meeting of April 7, 2004

   Chair Luoma reported that the draft minutes of the Executive Committee meeting are included for information in the board packet.

3. Amendment to Board Policy 1.A.2., Board of Trustees, Part 4. Officers of the Board, Subpart C. Duties and Responsibilities and Part 5. Standing Committees and Working Groups of the Board, Subpart a. Executive Committee (First Reading)

   The amendment to Board Policy 1.A.2., clarifies the Chair's responsibilities as they relate to assigning matters that do not fall within the described duties of any committee or within the described duties of more than one committee, and also to clarify the Executive Committee's responsibility for approving and monitoring the operating budget for the board office. This will be an action item at the May meeting.

4. Other
1. Chair Luoma reported that the Senate Education Committee, chaired by Senator Steve Kelley, met on April 15, to confirm eleven trustees. Trustees Antell, Dickson, Dusek and Ijioma were present. Due to scheduling conflicts, Trustees Despins, Hightower, Hoffman, Moran, Paskach, Shaw and Williams were not present. All eleven Trustees' named will be forwarded to the full Senate for confirmation.
2. Chair Luoma complimented Presidents Ron Thomas of Dakota County Technical College and Darrell Krueger of Winona State University on their institutions' presentations to the Educational Policy Committee on 2010 Campus Innovations. Chair Luoma also complimented President Danahar of Southwest Minnesota State University for presenting the first Campus Profile. The presentation highlighted some of the policy issues the Board will need to address as all of the plans become more complete. Alexandria Technical College will present their campus profile at the May meeting and further presentations will be postponed for review and discussion of the two presented thus far and also to defer to the Leadership Council for direction.
3. Chair Luoma commented on the excellent publications he has received from the colleges and universities, including the first quarterly publication from Minnesota State Community and Technical College and Minnesota State University Moorhead's foundation publication.
4. Chair Luoma stated that he will recommend Trustee Mary Choate and Mr. Jim McNeil for consideration to serve on the Minnesota State Colleges and Universities Foundation Board.
3. Trustee Reports
1. Trustee Ivan Dusek reported that he attended the Association of Governing Boards (AGB) National Conference on Trusteeship on March 27-30, in New Orleans. He also attended the Native American Awareness Gathering at Ridgewater College on April 3.
2. Trustee Cheryl Dickson reported that she attended the naturalization ceremony where Trustee Vincent Ijioma became a citizen of the United States on March 17. She added that nearly 800 people from 80 nations became citizens.
3. Trustee Will Antell reported that he also attended the AGB National Conference on Trusteeship.
4. Trustee Tyler Despins reported that he attended the Minnesota State University Student Association (MSUSA) Delegate Assembly in Bloomington on March 26-28.
5. Trustee Vincent Ijioma reported that he attended the Nellie Stone Johnson Scholarship Dinner in Bloomington on March 25.
4. Chancellor's Comments: James McCormick
1. Chancellor McCormick welcomed the public and friends of the system. He thanked the constituency leaders, presidents and Office of the Chancellor staff for their assistance and support.
2. Chancellor McCormick commented on the difficult times that the system has endured and added that he has visited all of the legislators and the business community representatives to build support for the system. He said that it is important for faculty and staff of the system to know how valued they are for their good work.
3. Chancellor McCormick reported on recent achievements throughout the system. Minnesota State University, Mankato faculty members were awarded the 2003-2004 Fulbright Scholar grants. St. Cloud State University Special Education Professor Dr. John Hoover has taken the lead in developing a national conference on the subject of bullying.
4. The Higher Learning Commission and the North Central Association of Colleges and Schools have accredited two Bemidji State University online master's programs and an undergraduate program. Regene Radniecki, a mass communications professor at Minnesota State University Moorhead, received the National Geographic Society Faculty Fellowship for 2004. Mary Kirk of Maplewood, Minnesota was selected as a recipient of the 2002-2003 Carol C. Ryan Excellence in Advising Award at Metropolitan State University.
5. The Higher Learning Commission recently recommended that Southwest Minnesota State University be reaccredited for another 10 years and the Minnesota Board of Teaching recommended continued accreditation of the university's teacher licensing program. Nine faculty members at two-and four-year institutions were nominated for the 2004 Minnesota Book Awards for their work as authors or editors. Lori Schmidt of Vermillion Community College's natural resources program is a finalist for the David R. Pierce Faculty Technology Award for 2004.
6. Chancellor McCormick stated the faculty members are at the heart of the mission of teaching and learning and emphasized the value of their work.
7. Chancellor McCormick stated that he had been invited to a meeting of The Teaching Commission chaired by Louis Gerstner, Jr., the former Chairman of IBM. At the meeting he presented the Minnesota State Colleges and Universities' response to Teaching at Risk: A Call to Action, the report of The Teaching Commission. Out of discussions at the meeting arose some recommendations: first, school districts and unions need to transform how teachers are paid and to pay well there needs to be performance accountability; second, college and university presidents must revamp the teacher education programs, making teacher quality a top priority; and third, states must improve or overhaul the licensing and certification requirements. Lastly, school districts must give principals a greater role in personnel decisions.
8. Chancellor reported that the House Capital Budget was made available and that he was very pleased with the amount of $145.8 million. All projects are within the Board's recommendations.
1. Work Plan Report

   Chancellor McCormick gave an overview of the third quarter report. He stated that the report is available as a summary and also a detailed 190 page report. Results are documented for the annual special-emphasis initiatives which include fund raising.

   The system is engaged in creating and or expanding capital and annual campaigns for the foundations and the results have been positive with increases in pledges, scholarships and grants.

   Online courses continue to expand. Facilities are being improved to provide students more options and opportunities. The Higher Learning Commission/North Central Association gave approval to coordinate and accredit the online courses and programs.

   The leadership preparation program is evolving with some progress. The Office of the Chancellor and the Human Resources division received a proposal for a mathematical model for succession planning and predicting future needs of leadership positions.

   Chancellor commented on the two-day Purpose and Excellence conference for presidents' assistants adding that it was successful with high attendance. There was good feedback on this first time conference.

   Chancellor spoke of the on-going initiatives in the area of retention. The Minnesota State University Moorhead Mathematics Center is highly effective. Services to students from pre-school through college continue to be improved by the partnerships. The Minnesota State Colleges and Universities also contribute to the continued education of school professionals.

   Chancellor reported that Trustee Clarence Hightower and he attended the accrediting visit by the Higher Learning Commission at Anoka Technical College. The Higher Learning Commission issued a 10-year approval and was impressed with the rebound of the college, as five years ago there was a discussion of closing the college. Chancellor commended President Anne Weyandt and the faculty for the successful turn-around of the college.

   Chancellor remarked on a report from the Center of Rural Policy and Development entitled Capitalizing on the Potential of Minnesota's Rural Campuses.

   Chancellor commented that he has and will continue to meet with the business leaders to gain support for the system. He also met with representatives of the Star Tribune and Minnesota Public Radio to discuss the system's bonding request.

   Chancellor concluded his report by requesting that the Board consider going from a quarterly report to two detailed reports per year, one in December and again in May. He added that he will continue to make reports in between the two detailed reports.

   Trustee Clarence Hightower expressed his support and appreciation to Chancellor McCormick for his leadership in these difficult times. Trustee Ann Shaw added that the results of the bonding bill emphasize the experience and efforts of the Chancellor. Trustee Dusek agreed stating that he admires the Chancellor's experience and vision and will continue to support him.

   Trustee Despins thanked Chancellor McCormick for attending MSUSA Delegate Assembly luncheon and indicated that the Chancellor answered some difficult questions raised by the students. Chair Luoma also thanked the Chancellor and the Office of the Chancellor staff for their efforts.

5. Joint Council of Student Associations
1. Minnesota State College Student Association

   Mr. Jeff Thompson, Vice President, and Mr. Brent Glass, Executive Director, Minnesota State College Student Association (MSCSA), addressed the Board of Trustees.

2. Minnesota State University Student Association

   Mr. Sam Edmunds, State Chair, Minnesota State University Student Association (MSUSA), addressed the Board of Trustees.

6. Minnesota State Colleges and Universities' Bargaining Units
1. Minnesota State University Association of Administrative and Service Faculty

   Ms. Jeanne Cornish, President, Minnesota State University Association of Administrative and Service Faculty (MSUAASF), addressed the Board of Trustees.

2. Inter Faculty Organization

   Mr. Jim Pehler, President, Inter Faculty Organization (IFO), addressed the Board of Trustees.

7. Consent Agenda
1. St. Cloud Technical College Mission Approval
2. Additional Measures Recommended for System-Level Accountability Framework
3. Presidential Emeritus Status

   Trustee Ivan Dusek requested that agenda item c. Presidential Emeritus Status be removed from the Consent Agenda. Chair Luoma stated that the item was removed from the consent agenda and placed on the Human Resources Policy Committee's agenda.

Trustee Shaun Williams moved approval of items a. St. Cloud Technical College Mission Approval, and b. Additional Measures Recommended for System-Level Accountability Framework. Trustee Vincent Ijioma seconded and the motion carried unanimously.

8. Board Standing Committee Reports
1. Education Policy Committee, Will Antell, Chair
1. Academic and Student Affairs Update

   Committee Chair Will Antell reported that the committee heard an update from Senior Vice Chancellor Linda Baer on the activities of the Academic and Student Affairs Division.

2. Minnesota Minority Education Partnership (MMEP) Report on Students of Color 2004

   Committee Chair Antell reported that the committee heard a report from Representative Carlos Mariani-Rosa, Executive Director and Dr. Bruce Vandal, Associate Executive Director, Minnesota Minority Education Partnership, Inc. on the findings and recommendations of the report The State of Students of Color: Building Alliances for Student Success. Chair Antell stated that the report contains some difficult issues that need to be addressed and requested that the Leadership Council become more engaged in that area.

3. Proposed Amendment to Policy 3.3, Assessment for College Readiness (First Reading)

   Committee Chair Antell reported that the Proposed Amendment to Policy 3.3, Assessment for College Readiness (First Reading) was removed from the agenda and will be tabled indefinitely.

4. 2010 Innovations
1. Dakota County Technical College - Nanotechnology
2. Winona State University - The New University

   Committee Chair Antell reported that the committee heard a presentation from Dakota County Technical College staff on Nanotechnology. Dakota County Technical College is preparing to offer the first Nanoscience Technician program in Minnesota. The two year AAS degree program is a partnership with the University of Minnesota.

   Committee Chair Antell reported that the committee also heard a presentation from Winona State University President Darrell Krueger and staff on the New University. The presentation provided information regarding change and innovation fostered and the steps taken to create a vision for a New University.

2. Educational Policy Committee - Campus Profile, Will Antell, Chair
1. Southwest Minnesota State University
   Committee Chair Antell reported that the committee heard a report from President David Danahar on Southwest Minnesota State University. The profile is the first of the strategic campus profiles. The profile provided information on the distinctive features, planning efforts and resource-related issues of the college.
3. Finance/Facilities Policy Committee, Andrew Boss, Chair
1. Finance/Facilities Division Update

   Committee Vice Chair Ann Curme Shaw reported that the committee heard an update on the Finance/Facilities Division from Vice Chancellor Laura King.

2. Economic Outlook

   Committee Vice Chair Shaw reported the committee heard a report on the Economic Outlook from Vice Chancellor King and staff. The report shows that Minnesota is below the national average in the support at the state and local level for public education.

3. Sarbanes/Oxley Recommendations

   Committee Vice Chair Shaw reported that the committee heard a report from Vice Chancellor King and Associate Vice Chancellor for Financial Reporting Tim Stoddard. While the Sarbanes/Oxley Act does not apply to the system, it does contain standards that are relevant.

4. Revenue Fund Program Update

   Committee Vice Chair Shaw reported the committee heard an update on the Revenue Fund Program Update from Vice Chancellor King and Associate Vice Chancellor Allan Johnson on the status of facilities design and construction projects funded from the 2002 bond sale in context with the Revenue Fund Reinvestment Program approved by the Board in 2001.

5. *Real Property Transfer and Acquisition

   Committee Vice Chair Shaw moved that the Board of Trustee approves:

1. The transfer of custodial control of "Parcel C" from the Minnesota Department of Natural Resources to Minnesota State Colleges and Universities on behalf of Rochester Community and Technical College, subject to the completion of all necessary due diligence requirements and approval of all documents by the Attorney General's Office.
2. The acquisition of 515 and 519 Main Street by Winona State University using Revenue Fund bond proceeds, subject to the completion of all necessary due diligence requirements and approval of all documents by the Attorney General's Office.
   

   Trustee Tyler Despins seconded and motion carried with one abstention, (Trustee Will Antell).

4. Audit Committee, Daniel Coborn, Chair
1. *Appointment of Principal External Auditor for FY 2004-2006

   Committee Chair Daniel Coborn moved that the Board of Trustees approves the appointment of Kern, DeWenter, Viere, Ltd to serve as principal external auditor for the Minnesota State Colleges and Universities. The principal auditor is responsible for providing audit services of the following:

   • System-wide financial statements,
   • Revenue Fund financial statements, and
   • Federal Financial Assistance.
   
   

   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, 2004 through 2006.

   The Board of Trustees authorizes the Executive Director of Internal Auditing and the Vice Chancellor/Chief Financial Officer to negotiate contracts with Kern, DeWenter, Viere, Ltd consistent with the terms contained in its proposal dated February 23, 2004.

   Trustee Andrew Boss seconded and the motion carried unanimously.

2. Review System-Level Accountability Measures for Affordability and Student Success at Transferring Institutions versus Non-Transfer Students

   Committee Chair Coborn reported that the committee heard a report from Executive Director John Asmussen on the ongoing effort to present data for the System-Level Accountability framework approved by the Board of Trustees in June 2003.

3. Possible FY 2005-2006 Topics for Internal Auditing Studies or Audits

   Committee Chair Coborn reported that committee heard a report from Executive Director John Asmussen on the development of the annual audit plan to be presented at the June meeting.

5. Technology Committee, Lew Moran, Chair
1. Information Technology Update

   Committee Chair Lew Moran reported that the committee heard an update from Vice Chancellor Ken Niemi on the current issues related to Information Technology.

2. Integrated Statewide Records System (ISRS) 2010 Planning Update
   Committee Chair Moran reported that the committee heard an update on the re-architecture of the Integrated Statewide Records System.
3. Security Issues Update

   Committee Chair Moran reported that the Security Issues Update will be reported at the May meeting.

4. Campus Showcase: Inver Hills Community College Budget Development Application

   Committee Chair Moran reported that the committee heard a presentation from Inver Hills Community College staff showcasing the 2004 Exemplary IT Project Awards.

6. Human Resources Policy Committee, Ivan Dusek, Chair
1. Human Resources Update

   Committee Chair Dusek reported that the committee heard an update from Vice Chancellor Bill Tschida on the Human Resources Division.

2. *Proposed Board Policy 1B.3, Sexual Violence Policy and Proposed Procedure 1B.3.1, Sexual Violence Procedure (Second Reading)

   Committee Chair Dusek moved that the Board of Trustees approves the proposed Board Policy 1B.3, Sexual Violence Policy. Trustee Vincent Ijioma seconded and the motion carried unanimously.

3. *Appointment of President of Alexandria Technical College

   With the appointment of Dr. Larry Shellito by Governor Pawlenty to become the adjutant general of the Minnesota National Guard effective November 3, 2003, Janet Mahoney was named acting president of Alexandria Technical College by Chancellor McCormick in accordance with Board policy. On December 18, 2003, Ms. Mahoney was approved upon the Chancellor's recommendation to become the interim president until such time a new president would begin work. A nationwide search was conducted with the assistance of an executive search firm. Dr. Joan Volkmuth, president of St. Cloud Technical College, chaired the search committee. Chancellor McCormick, along with members of the Board of Trustees and Cabinet from the Office of the Chancellor, interviewed three finalists.

   As a result of this process, Chancellor McCormick announced that he is pleased to recommend Dr. Kevin J. Kopischke for the presidency of Alexandria Technical College. Dr. Kopischke is currently serving as vice president at Alexandria Technical College where he is responsible for the customized and contract training, marketing and management programs, new program development and external relations.

   Dr. Kopischke holds a doctorate in education from the University of Minnesota-Twin Cities. He earned a master's degree in educational administration and leadership and a bachelor's degree in marketing education from St. Cloud State University. He also earned a two-year degree from the University of Minnesota-Crookston in hotel and restaurant management.

   Committee Chair Dusek moved that the Board of Trustees, upon the recommendation of Chancellor McCormick, appoints Dr. Kevin J. Kopischke as President of Alexandria Technical College, effective June 1, 2004, 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 the Human Resources Committee in accordance with the terms and conditions of the Personnel Plan for Minnesota State Colleges and Universities Administrators. Trustee Andrew Boss seconded and the motion carried unanimously.

   Dr. Kopischke thanked the Board of Trustees and Chancellor McCormick stating that he is honored to accept the position of president of Alexandria Technical College and looks forward to the challenge and moving ahead with the system for the next generation of learners.

4. *Presidential Emeritus Status

   Committee Chair Dusek moved that the Board of Trustees, upon the recommendation of Chancellor James H. McCormick, hereby confers emeritus status upon Thomas J. Horak, President of Normandale Community College, effective upon his retirement on July 11, 2004. Trustee Shaun Williams seconded and the motion carried unanimously.

7. Advancement Committee, Cheryl Dickson, Chair
1. Advancement Update

   Committee Chair Dickson reported that the committee heard an update from Deputy to the Chancellor John Ostrem on the government relations issues and from Associate Vice Chancellor Linda Kohl on the advertising campaign in progress. President Joseph Sertich reported on the Leadership Council Advancement Committee's work on an alumni names project.

2. State Legislative Update

   Committee Chair Dickson reported that the committee heard an update from Deputy to the Chancellor John Ostrem on the 2004 Legislative Session.

3. Federal Legislative Update

   Committee Chair Dickson reported that the committee heard an update from Deputy to the Chancellor Ostrem and Federal Government Relations Director Mary Jacquart on the current status of the Federal issues.

4. Integrated Communications Strategy

   Committee Chair Dickson reported that the committee heard a presentation from Christine Roberts, Consultant, Roberts & More, on a new initiative to develop an integrated communications strategy for the Minnesota State Colleges and Universities System leading up to the 2005 legislative session.

5. Business Survey Results Report/Advertising Campaign Update

   Committee Chair Dickson reported that the committee heard a report on the results of the Business Survey Results Report/Advertising Campaign.

6. Development Update

   Committee Chair Dickson reported to the committee on a progress report from Executive Director Catherine McGlinch on development activities to date and her initial plans for developing the comprehensive development program for the system.

9. Requests by Individuals to Address the Board

   There were no requests to address the Board.

10. Other Business

    Closed Session - At 3:17 p.m. Trustee Antell moved that the Board of Trustees meet in Closed Session. The meeting closed for (a) consideration of labor negotiations strategy; and (b) consideration of response to pending litigation, including Inter Faculty Organization v. Department of Employee Relations, et al.) and Zmora, et al. v. St. Cloud State University, et al., pursuant to Minnesota Statutes Sections 13D.03 and 13D.05. Trustee Ijioma seconded and the motion carried unanimously.

    The Closed Session concluded at 5:00 p.m.

11. Adjournment

    Chair Luoma adjourned the meeting by consensus at 5:00 p.m.

Recorded by Ingeborg K. Chapin
Board Secretary