NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEES
Monday, June 23, 2008, Oleson Center

CALL TO ORDER — Chair Walter J. Hooper called the meeting to order at 6:30 p.m.

APPROVAL OF AGENDA - Bill Myers moved to approve the agenda with one change—the tabling of Agenda Item W, President’s Contract.  Seconded by Ross Childs, the motion carried.

BUDGET HEARING – On a motion by Elaine Wood, seconded by Bill Myers, the regular meeting was adjourned and the budget hearing opened.  There was no public input.  On a motion by Ross Childs, seconded by Elaine Wood, the budget hearing was closed and the regular meeting reconvened.

REPORTS
Spring Employee of the Semester – Anne Monroe, Dean for Student Services, introduced Cheri Garvin, Assistant–Admissions Office, as an NMC Employee of the Semester for Spring 2008.  Anne noted that when she was interviewing for her current position, Cheri gave her a wonderful tour of the campus. One nomination said, “Cheri makes everyone feel they have been well-served.”  Ed Bailey, Director of Campus Services, introduced Dennis Christopher, custodian, as an NMC Employee of the Semester for Spring 2008.  Ed noted that Dennis is hard working, dedicated, and focuses on customer service every day.

Monthly Financial Report – Cathy Jones asked if there were any questions regarding the monthly financial report.  There were none.

Foundation Finance and Audit Committee Report – Ross Childs reported that at the NMC Foundation Finance and Audit Committee meeting on June 11, the Committee:

• Heard a presentation from Plante & Moran on the plan and scope of the NMC Foundation Audit beginning August 11, 2008.
• Heard a presentation from Northwestern Bank on their NMC Foundation portfolio investment performance outcomes, including a portfolio market value of $1,989,206.71 as of May 31, 2008.  Investments produced a Time Weighted Gross of Fees one year return of 3.26% as of May 31, 2008.
• Discussed April 22, 2008 individual meetings with NMC Foundation Financial Managers.
• Received a Fiscal Year 2009 budget.
• Received an update from the Investment Policy Task Force Subcommittee.  This review of the NMC Foundation’s Investment Policy by the Task Force continues.  This subcommittee will meet again on June 17, 2008.

Foundation Report – Doug Bishop reported that:

• The Commitment Scholarship Program benefitted greatly from all those who participated in and sponsored the Kingsley Club Outing last week.  Golfers and special gifts resulted in nearly $40,000 for the Commitment Program.  Doug offered special thanks to Ed Walker who provided the Kingsley Club for the day, matching gifts and a special personal endorsement of the Commitment Program.
• At last Wednesday’s Foundation meeting, we gave special recognition to our two faculty members of the Foundation, Margery Taylor and Steve Drake, who are leaving the Foundation Board after seven years of service.  Both have been actively engaged on Foundation committees, in Foundation events, as active friend-raisers and fundraisers and donors.  Doug noted that their active engagement on behalf of NMC—beyond the classroom—is appreciated.
• Congratulations go again to our Outstanding Alumnus for 2008, Todd McMillen, who was recognized last Friday night at a dinner in his honor.  A visual communications graduate, Todd has a successful downtown Traverse City business and has participated as a volunteer and donor with NMC on many Dennos Museum and sculpture-related projects.
• Several of our Foundation Board members will be featured as panelists at the Michigan Community College Association Summer Workshop on July 24 at the Grand Traverse Resort.  The conference theme is “celebrating success.”
• The next Foundation Board meeting will be held in August.

Presidential Performance Committee—Elaine Wood, Chair, reported that trustees met in a half-day study session on June 18 to review progress on the annual goals set by the trustees and President Nelson last year.  They met again in closed session this evening at dinner to look at the composite of evaluation scores.  President Nelson rated 3.7 on a 0-4 scale, which puts him well into the outstanding category.  Elaine said a copy of the composite was made available to Paul Heaton, should anybody wish to see it.  Trustees felt it was a good process. “We seem to get better at it each year,” Elaine said.  She asserted there was a lot of good progress on strategic goals and thanked trustees for scheduling the extra time.  On behalf of the trustees, Elaine thanked President Nelson for an outstanding year.  Tim Nelson thanked everyone who works at the college and noted that the progress was a true team effort. 

President’s Compensation Committee—Ross Childs, Chair, said trustees will have another meeting to talk specifically about contract language.  They hope to have a recommendation for that at the regular July board meeting. 

Board Policy Committee Report – Chair Jay Hooper, reported that the Policy Committee did not meet last month.

Board Chair Report – no report

President’s Report – President Nelson reported on the following:

• Legislative action will not occur until fall on the community college baccalaureate and the community college bonding bills.
• Pima College’s President Jana Kooi and Executive Director Nancy Russell visited NMC on June 9-10 to review our current and planned approaches in Lifelong and Professional Learning.  Pima is recognized as one of the national leaders in this arena.  They offered to share their systems designs and we are discussing adopting some of each other’s unique programs.
• The MCCA Summer Workshop is coming up July 24–26.  President Nelson encouraged all trustees to participate as fully as possible.
• Sotheby’s, the noted auction house in New York City, sold a small black-and-white photograph by Edward Weston for $1.6 million earlier this spring.  They thought it was one of only three known prints in existence–until the Dennos Museum Center revealed that a fourth print resides as part of the museum’s permanent collection.  The print was a 1989 gift from retired NMC art instructor Jack Ozegovic, his wife Ann, and Judith March Davis, who had given the image to the couple from her father’s estate.

PUBLIC INPUT – Trustees heard input from Chasity VanOstran, Heather and Jesse Woods, April and Lance Kingslier, Autumn Myers, and Dan Luglio on issues related to campus apartments (recent no-pets policy, security, parking); and Bill Weisner and Matthew Schoech on issues related to Campus Ministry.

Chair Hooper noted that trustees are all responsible pet owners and would like the President to look into the processes used to determine and communicate the “no pet” policy.  President Nelson said he would provide trustees with a written report on the status of all issues related to the apartments.  Regarding Campus Ministry, President Nelson noted that NMC has asked area churches to work with the student organizations by providing funding for their projects.  The college encourages students to form clubs, access available space and funding.  Additionally, NMC encourages students to become members of area congregations.

CONSENT ITEMS – On a motion by Cheryl Follette, seconded by Doug Bishop, the following items were approved:

• Minutes of the May 19, 2008 meeting
• Contributions for May 2008
• Summary Report for General Fund Accounts as of May 31, 2008
• FY08 year-end projections

ACTION ITEMS
Certification of Taxes – Doug Bishop made a motion to adopt a resolution to authorize that the millage rate of 2.17 mills be levied for operation purposes and the millage rate of 0.70 mills be levied for bond debt services for the fiscal year 2008-2009. Seconded by Ross Childs, the motion carried.

GLMA Tuition Rates – On a motion by Bob Brick, seconded by Bill Myers, trustees approved Great Lakes Maritime Academy tuition rates for the 2008-09 academic year on a contact-hour basis as follows: $142.00 for GLMA In-State; $180.40 for GLMA Out-Of-State.

Adoption of Budgets – Elaine Wood moved to adopt budget resolutions and budgets for the fiscal year 2008-2009 as presented.  Doug Bishop seconded the motion.  Motion carried.

President’s Performance Evaluation – Doug Bishop made a motion to accept the President’s Performance Evaluation report.  Seconded by Bill Myers, the motion carried.

Renewal of President’s Employment Contract – Tabled

Workers Compensation Insurance Provider – Bob Brick made a motion to authorize the administration to enter into a contractual agreement for workers compensation fund insurance with School Employers Group (SEG) Self-Insurer Workers Compensation Fund for one year in the amount of $63,709, with the option to renew for two additional years,  provided premiums remain competitive and service levels remain high.  The motion was seconded by Ross Childs.  Jay Hooper asked why Peterson McGregor was not selected, since they were the low bid.  Cathy Jones explained that SET-SEG was chosen for two reasons:  1) Limits with Peterson McGregor were set at $1.5M per accident.  There was no limit placed with SET-SEG.  2) SET-SEG covers a fixed number of volunteers while they are here; volunteers are not covered under Peterson McGregor.   The motion carried.

Aviation Insurance – Elaine Wood moved that administration be authorized to enter into a contractual agreement for aircraft hull, hangar and liability insurance with Wenk Aviation Insurance Agency for one year in the amount of $91,945, with the option to renew for two additional years, provided premiums remain competitive and service levels remain high.  Seconded by Doug Bishop, the motion carried.

Web Implementation Services – Elaine Wood made a motion that the administration be authorized to enter into a contractual agreement with Flight Path Creative, LLC, for website design and implementation services relating to the NMC website enhancement project in the amount of $70,000.  Bob Brick seconded the motion.  Bill Myers asked how this integrates with what the consultant recommended.  Paul Heaton explained that this is the design and implementation phase of the content management system that has already been selected.  Motion carried.

Dennos Feasibility Study – Ross Childs made a motion to authorize the administration to enter into a contractual agreement with Goettler Associates to conduct a fundraising feasibility study for the Dennos Museum Center in the amount of $27,500 plus directly related expenses not to exceed $4,500.  The motion was seconded by Elaine Wood.  When asked if the feasibility study is limited to the museum or will include other needs of the college, Kathleen Guy explained that at this juncture it is directed to the museum, but once a consultant is hired, we can talk with them about doing others.  Cheryl Follette noted that when the college did a feasibility study on the potential bond proposal, language was included to determine if there were other projects the voters would lend support to.  Kathleen noted that that was a randomly selected voter survey; this is targeted to specific donors.  The consultant will interview 45 or 50 people, vs. 400 for the bond survey.  Cheryl asked how much time the consultant expected to spend; Kathleen responded ten days on-site.  They will help develop the case for support and will do a follow-up report on their findings.  Bill Myers asked if we would be able to show a long-term plan as to how the museum will physically integrate into the rest of the campus.  Tim Nelson noted that we do not have a classic campus facilities master plan. Kathleen explained that they are proposing to test feasibility of endowment and bricks and mortar.  The final decision will be made once the report is received.  Elaine said that in those interviews there would be a case that is made for the need, and she would like to see that as soon as possible. President Nelson responded that building that case will be the consultant’s first step.  Kathleen noted that the case for support has already been drafted and will be the first document that will be shared with the consultant.  Elaine noted there is a huge variety in prices. Kathleen said the larger firms have greater overhead and travel expenses.  Asked why Goettler was chosen, Kathleen said she has known them by positive reputation for many years, they are consistently highly rated.  What we are selecting is people who are conducting a study.  They use an insightful line of questioning, and it’s important that they be able to follow conversation threads so as they hear something, they can follow it skillfully.  Bob Brick asked if 45 interviewees is enough to get that picture.  Kathleen said yes, it is consistent in the industry.  Motion carried; Bill Myers and Jay Hooper opposed the motion.

Amphibious Floats Purchase – Doug Bishop made a motion, seconded by Bill Myers, to authorize the administration to purchase amphibious floats from Whipaire for $54,185, to be funded from the $9,100 obtained from the sale of the straight floats, plus $45,085 from the FY08 general fund to be repaid in payments of $10,250 per year for the next 4.5 years from revenues generated by the Seaplane Program.  In response to questions, Aaron Cook explained that the training rate has been set at $146/hr., depending on fuel price; the planes will be kept in the hangar; and lots of interest has been expressed.  Floats retain their value.  If at the end of two years of operation it is determined the program is not financially viable, the floats could be removed and sold.  Motion carried.

PE and Fine Arts Building Boilers – Doug Bishop moved to authorize the administration to enter into the following contractual agreements: with Arms & Cole for the installation of a new boiler at the PE Building in the amount of $88,558, plus a 5% contingency for a total project budget of $93,000; with D&W Mechanical for the installation of a new boiler at the Fine Arts Building in the amount of $68,600, plus a 5% contingency for a total project budget of $72,000; and $10,000 for a gas service upgrade to the PE Building.  Total project cost is $175,000, to be funded from FY08 general fund transfer to the Plant Fund.  Seconded by Ross Childs, the motion carried.

Innovation Grants Fund – Elaine Wood moved that up to $50,000 from the unrestricted fund balance within the Foundation be made available annually to create an “Innovation Grants Fund,” and that one-time non-recurring grants of up to $5,000 be awarded on a quarterly basis for faculty and staff initiatives through a selection process made by representatives of the NMC Foundation Board (one Board of Trustees Foundation member and the 1st Vice Chair of the Foundation) along with the Vice Presidents Group.  Seconded by Bill Myers, the motion carried.

Fellows Committee Recommendation – On a motion by Doug Bishop, seconded by Elaine Wood, the following individuals were appointed Fellows of Northwestern Michigan College, with all the honors and privileges pertaining thereto:  Barbara and Charles Benson, Louise Hagerty, Terry and Wayne Lobdell.

DISCUSSION ITEMS - none

Recorded by Karen Sabin