NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEES
MONDAY, FEBRUARY 27, 2006, HAGERTY CENTER ROOM "C"

CALL TO ORDER
Chair Jay Hooper called the meeting to order at 6:33 p.m.

APPROVAL OF AGENDA
The agenda was approved on a motion by Ross Childs, seconded by Cheryl Follette.

PUBLIC INPUT
None

CONSENT ITEMS
On a motion by Cheryl Follette, seconded by Bob Brick, the following items were approved:

• Minutes of the January 23, 2006, regular meeting
• Contributions and pledges for January 2006 totaling $281,046.71
• Summary report for general fund accounts as of January 31, 2006 (Attachment)
• Service Employees International Union (SEIU) contract extension

INTRODUCTION OF NEW EMPLOYEE
Gene Jenneman introduced Dennos Museum Center's new Curator of Education, Diana Bolander. The board welcomed Diana to NMC.

GLMA STUDENT GROUP UPDATES
John Tanner told the Board that they would be hearing from two student groups: the Propeller Club and the US Naval Reserve/Merchant Marine. He thanked John Berck, Propeller Club faculty advisor, for his work with the group, and introduced and thanked LT Chris Peterson of the US Naval Reserve/Merchant Marine.

The propeller Club is an international organization with approximately 20 current GLMA student members. Cadets Jim McCallum, Amber Friel, and Dan Michelson provided an update on the activities of the Propeller Club. The group started a new scholarship program this year that provides one $500 scholarship per semester with funds earned by the cadets themselves. Recipients are selected by the Club based on academics, sea projects and financial need. The group also developed a new library in the computer lab and conducted a 30th memorial service for the Edmund Fitzgerald.

LT Chris Peterson updated the board about GLMA's US Naval Reserve/Merchant Marine Reserve program. He introduced two GLMA naval midshipmen and reserve members, Ray Jones and Scott Skrzypczak. Lt. Peterson told the board that many people do not realize how vital the Reserves are during times of crisis, as they play a major role in supporting the military. What this program is designed to do is to have a core of specialized persons working in maritime industry who are also trained in Navy operations. GLMA freshman reservists take Naval Science 100, where they are introduced to what the Navy has done and how the Merchant Marine has played a role in all major conflicts. Sophomores receive student incentive pay and take Naval Science 200, which entails weekly meetings covering various topics the military finds essential. Upon graduation, the cadets are sworn in as reserve officers. Ray Jones will be commissioned next year and Scott Skrzypczak started the program this year. LT Peterson introduced LT CDR Tim Dunn, an active duty naval officer who comes in and talks with GLMA midshipmen.

FACULTY COUNCIL REPORT
Steven Drake, Faculty Council Chair, gave the board a heads-up that faculty are quite concerned about the number of students coming to NMC not ready for college, particularly in the areas of Communication, Math and Science. Faculty members are working with the TBA Intermediate School District to coordinate efforts between NMC faculty and teachers in the various schools in the five-county area. They are not sure how it is going to work, but everybody seems interested in making something happen to benefit the students.

BBQ BOARD REPORT
Bob Brick reported that Our BBQ Board continues its hard work and is currently concentrating on advance sales. As part of the corporate sales initiative, a phone-a-thon was held on Thursday, February 23. Board members called area businesses to encourage them to purchase advance tickets for their employees and customers. The school sales committee is currently contacting area elementary schools to invite them to join our Elementary School Partnership. Schools earn $1.00 for each ticket they sell. We have partnered with TCAPS elementary schools for several years and we have now expanded the program to include all elementary schools in the area. The first BBQ ad ran in the Record-Eagle and Northern Express earlier this month. An opening ceremony is being planned and the governor has been invited to attend.

BOARD FINANCE AND AUDIT COMMITTEE
Jay Hooper reported that the Finance and Audit Committee considered the following at their meeting on February 14, 2006:

• Reviewed the Period 7 Financial Statements for FY06;
• Reviewed the FY06 yearend projections. Current projections suggest that we will achieve a slight surplus of about $51,000, this is in addition to being able to transfer our budgeted $160,000 to the plant fund;
• Discussed and agreed to classify the Hagerty Center operations as an auxiliary account;
• Reviewed our working capital investment practices and forecast for FY07 and noted that our returns are expected to be considerably better than in years past;
• Discussed energy costs and the college's approach to "locking in" rates in the current and next fiscal years;
• Discussed the first forecast for the FY07 budget;
• Heard an update on the State of Michigan funding process from Tim Nelson;
• Were told that the State DMB has authorized NMC to let the Oleson Center renovations project out for bids. We expect to take Board action at the March 20 meeting on these bids.

BOARD STRATEGIC GOALS COMMITTEE
Committee Chair Cheryl Gore Follette reported that the committee considered the AQIP Action Projects at their January 31, 2006 meeting. They discussed the top seven action project candidates, as well as the additional description and data for each. After reviewing the straw poll tally from employee group voting on action projects at Cabinet+, the committee selected three action projects they thought most critical to focus on:

1. Helping Students Learn with Enhanced Preparation
2. Understanding Community Learning Needs
3. Investing in Adjuncts

BOARD POLICY COMMITTEE REPORT
Chair Ross Childs reported that the committee did not meet in February. However, they are proposing a new policy that describes the process to be followed to add a new board policy or amend an existing policy (tonight's Action Item V). Policies B-0102.00 and B-0103.00 are on the agenda on a second-reading basis.

FOUNDATION REPORT
Cheryl Gore Follette reported that The Foundation met last Wednesday morning for its regular bi-monthly meeting. Agenda items included:

• A "focus on NMC" presentation about WNMC radio by Station Manager Eric Hines and reports on all current fundraising from the NMC Open to the BBQ and planned giving.
• A request to approve Jack Stegenga as a member of the Foundation Board since he is no longer serving as a Trustee member. That request is on tonight's agenda as Action Item U.
• A report that the Annual Campaign is at 95% of goal, with more than $286,000 raised. Our Phi Theta Kappa and SGA students are making donor "thank you" calls to all of our donors this week.

Cheryl said that nominations for the Foundation Excellence Awards are currently being solicited from faculty, staff, students and volunteers. Any NMC employee is eligible, and recognition is given for those who exemplify the NMC mission and values beyond their job description. The NMC Faculty Excellence Award and Foundation Excellence Awards are funded by the Foundation and are the highest honor that can be bestowed on an employee.

Cheryl reported that the Tasters Guild Auction was a great success on Friday night, thanks to our culinary students, faculty and the volunteers from the Tasters Guild. Tickets were sold out and bidding for live and silent auction items was vigorous. Preliminary figures show more than $26,000 in proceeds, with a final count yet to come. Many students received scholarships during the evening from last year's proceeds-and this happens just before the bidding begins, so it's great incentive for donors to be generous! Further evidence that timing is everything.

FOUNDATION FINANCE AND AUDIT COMMITTEE REPORT
Ross Childs reported that NMC Foundation Finance Committee meeting on February 21st, the Committee:

• Heard a presentation on investment performance from Huntington Bank, holder of approximately 25% of our Foundation assets. In the last 12 months investments produced a 5.12% return; for the quarter ending December 31st, the return was 1.07%. Huntington recommended investing 10% of the funds under management in an Option Return Strategy, with the objective of outperforming benchmarks over a full market cycle by capturing market upside and protecting principal during down markets through individually managed equities, coupled with active options trading.
• Received an overall portfolio report for the quarter ending 12-31-05 reflecting a 1.49% return and FYTD time weighted return of 4.78%
• Received a quarterly statement of activities for the Foundation which reflects that revenue and expense projections are on target
• Received a report of portfolio investment fees
• Discussed the disposition of a vacant waterfront lot in Acme Twp. that was part of the Richard Engstrom Trust received through a planned gift in 2005. Next steps are to investigate the best approach to liquidate it and invest the proceeds from the sale.
• Decided to schedule a focused discussion (a meeting of the Finance Committee specifically for this purpose) about the possibility of hiring a contract analyst to advise the Finance Committee regarding effective and efficient fund investment.

BOARD CHAIR REPORT
None

PRESIDENT'S REPORT
President Timothy Nelson

• Thanked the GLMA students for coming and thanked the advisors for their work with the students and helping them on their way;
• Announced bad news/good news that Kristin Stehouwer has taken a position with Macomb Community College, and her last day with NMC will be March 10. He thanked Kristin for her contributions to NMC and wished her well in her new career move;
• Told the board that NMC's pre-engineering student team took first place at the Michigan Tech Blizzard Baja Race, beating out schools such as Georgia Tech, University of Illinois, South Dakota State, and Michigan Tech, some with budgets exceeding $100,000. Upon accepting the honor, the students acknowledged the work of the previous class that built the baja racecar.
• Announced that the national search for Vice President of Finance and Administration is moving along, with a deadline for applications of February 28.
• Told the board he testified at the Senate Appropriations Committee meeting. The "testimony" was more of a two-hour conversation, because two of the senators were on the Performance Indicator Task Force.
• Said he would be in Lansing on Friday for a meeting of the MCCA Executive Director Search Committee.

FOUNDATION BOARD APPOINTMENT
On a motion by Cheryl Gore Follette, seconded by Ross Childs, the board approved the appointment of Jack B. Stegenga to a three-year term on the NMC Foundation Board of Directors. Motion carried.

POLICY A-106.03
Ross Childs moved to approve Policy A-106.03, Policy Amendments and Additions, on a first-reading basis. Seconded by Cheryl Follette, this motion passed.

POLICY B-0102.00
Cheryl Follette made a motion, seconded by Ross Childs, to approve Policy B-0102.00, Monitoring Presidential Performance, without revision on a second -reading basis. Motion carried.

POLICY B-0103.00
Ross Childs made a motion, seconded by Bob Brick, to approve Policy B-0103.00, Communication and Counsel to the Board, as revised on a second-reading basis. Motion carried.

DISCUSSION ITEMS
Tim Nelson mentioned that Elaine Wood is out of town on business and Ted Mattis is ill.

Bob Brick stated that, after reading the Performance Indicator Task Force report, he found it to be very fair and balanced. There are a lot of issues that need to be addressed and Tim did a terrific job of considering the needs of all community colleges in the State.

ADJOURNMENT
Meeting adjourned at 7:30 p.m.

Recorded by
Karen Sabin