June 16, 2004 Board Meeting
Wells Fargo Place
Saint Paul, Minnesota
THIS SUMMARY IS NOT THE OFFICIAL MINUTES OF THE MEETING
The Board of Trustees approved a base salary increase of five percent for Chancellor James H. McCormick effective July 1, 2004, and authorized the Board Chair to renegotiate the Employment Agreement with the Chancellor to:
- Extend his employment agreement for a period of up to 14 months beyond its current term.
- Effective for the extension period in #1, above, provide a resignation notice period of not less than nine months nor greater than 12 months. The Chancellor shall be eligible for severance benefits in accordance with the current agreement regardless of whether he chooses to extend his employment beyond June 30, 2007.
- Make modifications needed to implement the authorized changes.
Minnesota State Colleges and Universities System Annual Work Plan for 2004-2005
The Board of Trustees approved the Minnesota State Colleges and Universities System Annual Work Plan for 2004-2005.
FY 2005 Operating Budget Including Tuition and Fees
The Board of Trustees approved the following motion:
- Approve the proposed tuition revisions as outlined in Attachments A1 revised, A2 revised, and A3 revised and A4. The percentage impact of resident tuition rates represents the maximum amount that can be applied to other tuition rates charged by the institution not impacted by reciprocity agreements such as nonresident and off campus rates. The tuition increase is effective summer session or fall semester, 2004 at the discretion of the president.
- Approve extension of the non-resident non reciprocity tuition pilot as detailed in the report and authorizes new pilots at Central Lakes College and Minnesota State Community and Technical College through FY2007 (Attachment C).
- Approve Itasca Community College request to charge engineering students a $50 per semester residential learning community fee (Attachment D).
Allocation Framework Implementation
The Board of Trustees approved the following motion:
- The Chancellor will consider reinvestment opportunities as part of the FY 2006-2007 biennial operating budget request.
- Full implementation of the allocation framework as contained below effective with the FY 2006 allocations.
|Commitment to Access||The Chancellor will seek legislative reinvestment to benefit all institutions in the FY2006-FY2007 biennial operating budget request.|
|Full Implementation||Implementation will occur in FY2006. The model is implemented by allocating 50% of the funds on the prior year base and 50% on the framework. A hold harmless provision will be added for the biennium to assure all institutions their FY2005 level of funding.|
|Continuous Improvement||Any policy changes will be reviewed with the Leadership Council and reported by the Chancellor to the Board at the time colleges and universities present their upcoming budget plans.|
|Set Asides||Set asides are allocations for which the formula does not apply. It includes such areas as the office of the chancellor, debt service, attorney general, legislative auditor, etc.|
|Priority Funds||Priority funds are incentive and performance funds that are used to drive compelling educational interests. These priorities can be determined by the legislature, Board or the Chancellor. Academic and Student Affairs leadership will recommend quality, collaboration and access initiative strategies.|
INSTITUTIONAL BASE ALLOCATIONS
|Instruction||Programmatic comparisons by level of instruction using Classification of Instructional Program codes at a combination of 2-, 4-, and 6-digit levels. A band of 20% around the MnSCU program average is adjusted by the difference that MnSCU spending is below the national average. The programmatic comparison recognizes state university costs at lower division for departmental research.|
|Administrative and Student Support Services||Based on national peer spending levels. Allocation gives state universities and colleges a core amount of variable funding per FYE.|
|Facilities||Operations includes square footage, three-year rolling average for utilities, recognized leases, student duplicated headcount. It also recognizes multi-campus, residential impact, and steam plant. Repair and replacement is allocated on square footage.|
|Library||Allocation gives state universities 6% and state colleges 3.5% of the allocated amount for library expenditures.|
|Separately Budgeted Research and Public Service||Allocation gives state universities 2.62% and state colleges 1.17% of the allocation amount for research and public service.|
Amendment to Board Policy 2.8 Student Life
The Board of Trustees approved the amendments to Policy 2.8 Student Life.
Mission Review: Northwest Technical College
The Board of Trustees approved the following revised mission for Northwest Technical College:
Northwest Technical College develops workforce capacity by providing quality occupational learning opportunities and services to meet a variety of career choices and customer needs. The College serves traditional and distant learners, employed workers, and businesses by providing industry-validated technical and general education curricula on its five northwestern Minnesota campuses, at off-campus sites, and through distance delivery. Working collaboratively with higher education and business partners, the College graduates capable workers at the occupational entry level and upgrades skills to meet changing industry needs. Program graduates are awarded Certificates, Diplomas, Associate in Science or Associate in Applied Science Degrees.
Audit Plan - Fiscal Year 2005
The Board of Trustees approved the Office of Internal Auditing annual audit plan for fiscal year 2005.
Winona State University Foundation Stadium Press Box
The Board of Trustees amended the action by requiring that Winona State University will return to the Board with a finance plan for the final build-out prior to commencement of the work. The Board approved the authorizing resolution as follows:
- Winona State University Foundation (the "Foundation") has proposed to Winona State University ("WSU"), an administrative unit of the Minnesota State Colleges and Universities, that the Foundation construct the shell of a new stadium/press box building ("the Building") on the WSU campus;
- It is further proposed that the Building be located on land to be leased to the Foundation by WSU for the duration of the construction period; and
- This Board of Trustees has been provided with full information concerning the Building, the physical nature of the project, and other relevant matters; and
- The Foundation will pay for the costs of construction of the Building up to a "Maximum Cost" of construction of $900,000. If the Foundation receives restricted donations intended for construction of the Building, the Foundation will apply such donations to construction costs it incurs. Additional unrestricted donations to the Foundation may also be used for the construction of the Building; and
- If the cost of construction of the Building exceeds the "Maximum Cost", the Foundation will have the option of terminating the lease unless WSU elects to make available the additional funds needed. WSU will not use tuition revenues or state or federal appropriations for the capital cost of the constructing of the Building; and
- WSU intends to install improvements to the Building after the Building is completed.
NOW THEREFORE, be it resolved by the Board of Trustees of Minnesota State Colleges and Universities, as follows:
- This Board hereby makes the following findings with respect to the WSU Stadium/Press Box Building project:
- The Building will be designed, constructed and operated as a stadium/press box building for the benefit of WSU and its students, and therefore is a facility of a type listed in Minnesota Statutes, Section 136F.60, subds.2 (b) and (d) (2003).
- Pursuant to Minnesota Statutes, Section 136F.60, subd. 2(c) (2003), this Board is empowered to approve the lease of state property to the WSU Foundation to provide access to land owned by the state for the construction of the Building as a stadium/press box for the benefit of WSU and its students.
- Exhibits A-G hereto sets forth a description of the construction project, its estimated cost, including legal, engineering and financial expenses and other relevant information.
- Exhibit A: City of Winona Ordinance 3608 dated April 19, 2004
- Exhibit B: Site sketches of WSU campus and proposed property to be leased
- Exhibit C: Description of the Building and selected elevations and floor plans
- Exhibit D: Legal description of WSU land to be leased to WSU Foundation
- Exhibit E: Summary of geotechnical evaluation
- Exhibit F: Estimated construction and operating costs
- Exhibit G: Summary of donations/sponsorship schedule
- Pursuant to Minnesota Statutes, Section 136F.60, subd. 2(b), this Board is authorized to receive gifts for capital projects.
- Pursuant to the authority granted by Minnesota Statutes, Section 136F.60, subd. 2(c) (2003), the land on which the Building is to be located shall be leased by Minnesota State Colleges and Universities to the Foundation for a term necessary to complete the construction of the Building. This Board further finds that the siting and design of the Project are consistent with the WSU campus master plan and with Minnesota State Colleges and Universities design and construction standards. The lease of the land to the Foundation will terminate upon completion of construction of the Building. The Foundation shall convey all its legal interests in the Building to WSU upon completion of construction.
- The Chancellor or his designee are hereby authorized and directed to take all actions necessary or desirable in connection with the lease of the land and construction of the Building and matters related thereto. The Chancellor or his designee are further authorized and directed to execute and deliver on behalf of Minnesota State Colleges and Universities any and all contracts, agreements, instruments, documents or other items related thereto. All actions heretofore taken by the Chancellor, his designee or any authorized employee of Minnesota State Colleges and Universities in connection with the lease of the land and construction of the Building are hereby ratified and approved.
- In addition to the adoption of the above resolution, the Board directed Winona State University to return to the Board with a finance plan for the final build-out prior to commencement of the work.