Minnesota State - January 2004 Board Meeting Board Meeting Minutes

Thursday, January 22, 2004
Wells Fargo Place
St. Paul, Minnesota

Trustees Present: Jim Luoma, Chair, Will Antell, Andrew Boss, Tyler Despins, Cheryl Dickson, Ivan Dusek, Clarence Hightower, Robert Hoffman, Vincent Ijioma, Lew Moran and Shaun Williams

Absent: Mary Choate, Daniel Coborn, David Paskach and Ann Curme Shaw

Call to Order:
Chair Jim Luoma called the meeting to order at 2:06 p.m.
Chair's Report
1. Minutes of Board of Trustees Meeting of December 17, 2003
  As there were no corrections to the minutes, Chair Luoma announced that the minutes stand approved as written.
  
  Chair Luoma reported that the Board of Trustees and Chancellor McCormick hosted the Seventh Annual Foundation Thank You Luncheon today, January 22, 2004, at the Radisson Riverfront Hotel in Saint Paul. The guest speaker was Ms. Sheryl Buss, a retired faculty member from Dakota County Technical College.
  
  Chair Luoma announced that Trustees Choate, Despins, Dickson, Dusek and Moran, along with Chancellor McCormick, will attend the Association of Community College Trustees (ACCT) National Legislative Summit in Washington, D.C., February 8-11, 2004. Trustee Choate is a member of the Board of Directors on the ACCT Board, and Trustee Dusek is a member of the Diversity Committee. In addition, Trustees Choate and Dickson are members of ACCT's Select Committee that will develop a model or system of exemplary community college governance that will become the basis for ACCT's educational programming in the future. In addition, the Trustees and Chancellor will meet with members of Minnesota's Congressional delegation.
  
  Chair Luoma stated that there will be six new Board members beginning July 1, 2004. He added that he has convened a work group to develop a proposal for a formal Trustee orientation program. The group shall be chaired by Trustee Tyler Despins and will include Trustees Boss, Dickson and Paskach, and Board Secretary Inge Chapin. The group will present recommendations to the Executive Committee meeting in May.
  
  Chair Luoma reported that Vice Chair Robert Hoffman will chair the Ad Hoc Assessment Committee on the evaluation of Chancellor McCormick and added that Vice Chair Hoffman will select the committee members.
Trustee Reports
Trustee Tyler Despins reported that he attended the Minnesota State University Student Association (MSUSA), Board of Directors meeting at Minnesota State University, Mankato on January 16-18.

Trustee Vincent Ijioma reported that he attended the Martin Luther King, Jr. celebration at Minneapolis Community and Technical College on January 15. He also attended the Minnesota State College Student Association (MSCSA) meetings at Normandale Community College on January 16-17.

Trustee Shaun Williams reported that he also attended the MSCSA meetings at Normandale Community College. He added that there was a discussion on the selection process for the upcoming student Trustees positions on Minnesota State Colleges and Universities Board of Trustees. He also stated that he and Trustee Despins attended Governor Tim Pawlenty's press conference on bonding projects at Winona State University on January 9.
Chancellor's Comments: James McCormick.
Chancellor McCormick welcomed the public and friends of the System to the meeting. He thanked the constituency leaders, presidents and Office of the Chancellor staff for their assistance and support.

Chancellor McCormick reported that he accompanied Governor Tim Pawlenty on bonding visits to Winona State University and Minnesota State University Moorhead.

Chancellor stated that Governor Pawlenty recommended $88.6 million of the System's bonding request of $274.9 million. He added that this represents approximately 32 percent of the system's bonding request with $49 million for major repair and replacement projects and $39.6 million for building and renovation projects. Chancellor commented that the Governor's proposal is a good start, but he had hoped that the Governor would have gone further in his recommendations. He added that the Governor had a difficult time deciding among the $1.6 billion in requests throughout the state.

Chancellor commented that he looks forward to working with Governor Pawlenty and the Legislature to obtain further support for more projects. He added that the capital request is number one on his agenda for this quarter. This may be the only opportunity in two years to be advocates for the capital budget. He further added that three-fourths of this year's request is for renovation of existing spaces with the rest for new construction.

Chancellor stated that during the holiday period the business visits had slowed but now have resumed and have been going extremely well. He added that he had been at Century College with area business leaders and that seven past chamber presidents were in attendance at the meeting. He stated that there have been informal meetings with Legislators, including both the Senate and House education chairs. He completed nine visits with four senators and five representatives.

Chancellor stated that he had separate opportunities to meet with Minneapolis Mayor R. T. Rybak and Saint Paul Mayor Randy Kelly to build relationships with the two city leaders. He and staff members also met with Lori Sturdevant, Star Tribune columnist, and with the Minnesota Public Radio (MPR) news staff to discuss the System.

Chancellor stated that the Leadership Council met this month by conference call in the interest of cost-savings. The responses were mixed, but he added that there may be two or three meetings per year by telephone to be cost-efficient.
1. Work Plan Report
  Chancellor McCormick gave an overview of the second quarter report. He stated that positive strides have been made and the presidents have incorporated successfully the work plan while maintaining their campus uniqueness. He commented on the Board committee structure and added that a few years ago as a result of a recommendation from Trustee Mary Choate, the Board was asked to review its structure and broaden its interest. The outcome was the addition of the Advancement and Technology committees. Chancellor commented on how right that insight was to broaden and fit the needs of the System.
  
  Emerging from the work plan are four special-emphasis initiatives beginning with Fundraising. Minnesota State Colleges and Universities are involved in expanding capital and annual campaigns. Campaign results have been positive, and recent grants have been bestowed to the campuses from the National Institute on Mental Health, the National Institute on Alcohol Abuse and Alcoholism, the United States Department of Justice, the National Science Foundation and the National Aeronautics and Space Administration. He added that there will be more federal grants coming as well.
  
  The second initiative is Coordinated/Increased Access to Courses/Programs/Services Through Technology. The growth in the number of courses and instructors offering courses on-line has expanded. The National Guard On-Line project is offered by eleven colleges and universities with 228 registered students offering members of the National Guard on-line courses while they are stationed overseas.
  
  The third initiative is An Examination and Clarification of the System's Organizational Structure. The Services Advisory Group concluded its preliminary work and will conduct an annual survey concerning the quality of services to campuses. Based upon those results, the committee will determine areas that need further investigation.
  
  The fourth initiative is Establishment of a System Leadership Development Program. Modest progress has been made and significant information will be brought to the Board during the next quarter on this initiative.
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, and Mr. Frank Viggiano, Executive Director, Minnesota State University Student Association (MSUSA), addressed the Board of Trustees.
  
  Mr. Viggiano introduced his wife Penny to the Board of Trustees stating that she accompanied him as he announced to the Board his resignation as Executive Director of MSUSA, effective February 20, 2004. He expressed his gratitude for the opportunities he has had to work with many wonderful people and recognized his staff, introducing those present at the meeting. He especially expressed his appreciation to Chancellor McCormick for not only the working relationship, but also for his friendship. He concluded by thanking his wife for supporting him through this difficult time.
  
  Chair Jim Luoma read a statement from former Trustee Michael Nesdahl who expressed his sincere gratitude to Mr. Viggiano for his service to the students and MSUSA. Chair Luoma then called upon President Larry Litecky of Century College. President Litecky expressed that Mr. Viggiano has been an extremely dedicated advocate for the students and that the System owes a great deal of gratitude to him for his dedication and outstanding performance through the years.
  
  Chancellor McCormick publicly thanked Mr. Viggiano for his great support and the opportunity to have worked with him these past two and one-half years.
Minnesota State Colleges and Universities' Bargaining Units
1. American Federation of State, County and Municipal Employees
  Ms. Karen Foreman, President, American Federation of State, County and Municipal Employees (AFSCME), addressed the Board of Trustees.
2. 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.
3. Inter Faculty Organization
  Mr. Jim Pehler, President, Inter Faculty Organization (IFO), addressed the Board of Trustees.
Consent Agenda
1. College and University Strategic Profile Presentations to the Board of Trustees
  Trustee Shaun Williams moved approval of the Consent Agenda. Trustee Vincent Ijioma seconded, and the Consent Agenda was approved unanimously.
Board Standing Committee Reports
1. Finance/Facilities Policy Committee, Andrew Boss, Chair
  1. Finance/Facilities Division Update
    
    Committee Chair Andrew Boss reported that the committee heard an update from Vice Chancellor Laura King on the Finance/Facilities Division.
  2. *Proposed Amendment to Board Policy 6.4, Facilities Planning (Second Reading)
    
    Committee Chair Boss moved that the Board of Trustees approves the proposed amendment to Policy 6.4, Facilities Management. Trustee Lew Moran seconded and the motion carried unanimously.
  3. FY 2005 Revenue Fund Fees and Spending Plan (First Reading)
    
    Committee Chair Boss reported that the committee reviewed and had a discussion on the FY 2005 Revenue Fund Fees and Spending plan. This will be an action item at the March meeting.
  4. Campus Capital Investment
    
    Committee Chair Boss reported that the committee heard a presentation from Associate Vice Chancellor Allan Johnson on Campus Capital Investment. Acquisition of real property has been a primary source of concern to the Board in the last several months. The Board of Trustees retains final approval authority over each land acquisition, whether funded by state capital appropriations directly or through campus operating budgets.
  5. FY 2003 and FY 2002 Audited Financial Statements
    
    Committee Chair Boss reported that the committee heard a presentation from Vice Chancellor-Chief Financial Officer Laura King on the FY 2003 and FY 2002 Audited Financial Statements and the results of individual institutions financial statement audits. The financial statements have been audited by the firm of Deloitte and Touche LLP.
2. Joint Meeting of the Audit and Finance/Facilities Committees, Andrew Boss and Daniel Coborn, Co-Chairs
  1. Discussion of Sarbanes-Oxley Act of 2002
    Committee Co-Chair Boss reported that the committees heard a report and had a discussion on the Sarbanes-Oxley Act of 2002. Committee Chair Boss stated that legislation is making a terrific impact on large companies that are publicly traded. Institutions of higher education across the country are determining how these standards apply in their context. He added that Mr. John Nelson, Managing Director – Higher Education of Moody's Investor's Service, discussed national trends concerning the Act and shared the views of the national rating agencies.
3. Audit Committee, Daniel Coborn, Chair
  1. Demonstration of System-Level Accountability Web Site
    Trustee Boss reported in the absence of Committee Chair Daniel Coborn that the committee received a demonstration on the System-Level Accountability Web site. This Web site is intended to be the primary method of communicating system accountability measures to the Board of Trustees.
4. 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. Instructional Management Systems Implementation Plan Update
    Committee Chair Moran reported that the committee heard an update from Associate Vice Chancellor John O'Brien and System Director Dick Johnson on the implementation of Desire2Learn. Committee Chair Moran stated that the implementation has begun and continues to go well to date.
  3. Portal Project Overview
    
    Committee Chair Moran reported that the committee heard an overview of the Portal Project. The project will investigate portal technology and potential use to support business and academic needs within Minnesota State Colleges and Universities.
  4. Campus Showcase: Portals
    - Alexandria Technical College
    - Metropolitan State University
    Committee Chair Moran reported that the committee heard a presentation demonstrating portals being used on two campuses.
    
    The Alexandria Technical College student information portal is a Web-based student communication and transaction center. NetDirect, the portal services for Metropolitan State University's students, faculty and staff, is fully operational and constantly expanding.
5. Educational 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 Baer on the activities of the Academic and Student Affairs Division. Senior Vice Chancellor Baer provided an outline of scheduled meetings of interest to Board members.
  2. *Resolution in Recognition of the Brown v. Board of Education's 50th Anniversary
    Committee Chair Antell moved that the Board of Trustees adopt the following resolution on the 50th anniversary of the Brown v. Board of Education decision.
    
    Board Resolution
    
    Whereas, the Minnesota State Colleges and Universities System comprises 32 colleges and universities that provide the preferred pathway to education opportunities throughout the State of Minnesota; and
    
    Whereas, the year 2004 marks the 50th Anniversary of the Brown v. Board of Education decision – a landmark for equity in public education; and
    
    Whereas, the Brown decision forever changed the long-standing separate-but-equal practices of many public education institutions, including post-secondary colleges and universities; and
    
    Whereas, the Board of Trustees recognizes that many states struggle with removing the vestiges of segregation in education, including reducing and removing the continuing gap in learning achievement for racial and ethnic minority children in K-12 education; and
    
    Whereas, the Minnesota State Colleges and Universities System's mission is to provide the diverse citizens of Minnesota the benefits of high-quality, accessible, future-oriented higher education; and
    
    Whereas, the Board of Trustees recognizes that the character of public education at all levels is one based upon principles of equity, quality and shared responsibility of citizens to work to ensure equal opportunity and access for all;
    
    Therefore, be it resolved on the 50th Anniversary of the Brown v. Board of Education decision, that we, the Board of Trustees for the Minnesota State Colleges and Universities System, are pleased to join with the Directors of the American Association of Community Colleges to add our combined and unwavering commitment to providing equal access to higher education; and
    
    Be it further resolved, that we call to action all colleges and universities to ensure learning equity for all students through institutional, political, personal, and civic engagement.
    
    Trustee Ivan Dusek seconded, and the motion carried unanimously.
6. Proposed Amendment to Policy 3.17 Degrees, Diplomas and Certificates, 3.21 Undergraduate Credit Transfer, and 3.25 Degree Granting Authority (First Reading)
  Committee Chair Antell reported that the committee reviewed the Proposed Amendment to Policy 3.17 Degrees, Diplomas and Certificates; 3.21 Undergraduate Credit Transfer; and 3.25 Degree Granting Authority. This will be an action item at the March meeting.
7. Proposed Amendment to Policy 2.9 Financial Aid Satisfactory Progress (First Reading)
  Committee Chair Antell reported that the committee reviewed the Proposed Amendment to Policy 2.9, Financial Aid Satisfactory Progress. This will be an action item at the March meeting.
8. Developmental Education Demonstration Project Report
  Committee Chair Antell reported that due to time constraints the Developmental Education Demonstration Project Report will be presented at the March meeting.
9. Regions Change – Whose Region is it Anyway?
  Committee Chair Antell reported that due to time constraints the Regions Change – Whose Region is it Anyway? will be presented at the March meeting.
Human Resources Policy Committee, Ivan Dusek, Chair
1. Human Resources Update
  Committee Chair Ivan Dusek reported that the committee heard an update from Associate Vice Chancellor for Personnel Linda Skallman on the Human Resources division. The committee heard that the presidential searches are progressing and on schedule.
2. *Minnesota State College Faculty (MSCF) Contract Approval
  Committee Chair Dusek moved that the Board of Trustees approves the terms of the 2003-2005 labor agreement with Minnesota State College Faculty (MSCF), and authorizes the Chancellor to sign the agreement on behalf of the Board. Trustee Vincent Ijioma seconded, and the motion carried unanimously.
3. *Minnesota State University Association of Administrative and Service Faculty (MSUAASF) Contract Approval
  Committee Chair Dusek moved that the Board of Trustees approves the terms of the 2003-2005 labor agreement with Minnesota State University Association of Administrative and Service Faculty (MSUAASF), and authorizes the Chancellor to sign the agreement on behalf of the Board. Trustee Shaun Williams seconded and the motion carried unanimously.
Advancement Committee, Cheryl Dickson, Chair
1. Advancement Update
  Committee Chair Dickson reported that the committee heard an update from Deputy to the Chancellor for Government Relations John Ostrem on the visits with business leaders. Committee Chair Dickson also reported that Kruskopf Olson Advertising in Minneapolis will develop a targeted advertising campaign aimed at business and opinion leaders that will involve statewide media placement.
2. FY 2003 Gifts and Grants Report
  Committee Chair Dickson reported that the committee heard an update from Associate Vice Chancellor Linda Kohl on the FY 2003 Gifts and Grants Report. Comparisons are made between the Minnesota State Colleges and Universities institutions and their foundations both for cash gifts and grants received and for non-cash gifts between fiscal years to determine philanthropic trends.
3. Grant to Saint Paul College
  Committee Chair Dickson reported that the committee heard an announcement from President Donovan Schwichtenberg that Saint Paul College received a grant. President Schwichtenberg introduced Mr. Charles Berthiaume, Rolex Watch USA, who presented a grant of $1,000,000 dollars to the Saint Paul College Foundation. The grant awards $200,000 dollars per year for five years. President Schwichtenberg stated, "This is the largest grant Saint Paul College Foundation has ever received, and it will be used to upgrade the facilities, equipment and standards required by the watch industry."
4. 2004 State Legislative Session
  Committee Chair Dickson reported that the committee heard an update from Deputy to the Chancellor for Government Relations John Ostrem on the capital bonding bill and other higher education issues to go before the 2004 legislature.
5. 2004 Federal Legislative Proposals
  Committee Chair Dickson reported that the committee heard an update from Deputy to the Chancellor for Government Relations John Ostrem and Federal Government Relations Director Mary Jacquart on the 2004 Federal Legislative Proposals. The update included Washington, D.C. activities and the Higher Education Act.
Requests by Individuals to Address the Board
There were no requests to address the Board.
Other Business
There was no other business to come before the Board of Trustees.
Adjournment
Chair Luoma adjourned the meeting by consensus at 4:03 p.m.

Recorded by Ingeborg K. Chapin
Board Secretary