NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEES
MONDAY, APRIL 24, 2006, HAGERTY CENTER ROOM A

The Board of Trustees and members of the executive staff shared dinner and conversation with members of the Student Government Association and their advisors prior to the regular meeting.

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

APPROVAL OF AGENDA
Ross Childs moved to rearrange the agenda by moving Item M to follow Item J, and Item E to follow Item U. Bob Brick seconded the motion; motion passed.

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

• Minutes of the March 20, 2006, regular meeting;
• Contributions and pledges for March 2006 totaling $70,371.24;
• Grants notifications for quarter ending March 31, 2006, totaling $313,066.00;
• Summary report for general fund accounts as of March 31, 2006. (Attachment)

AVIATION REPORT
Marguerite provided a report that presented the case for strengthening and continuing the flight-training program. The report referenced the work of the University of North Dakota (UND) regarding the re-sizng of NMC's aircraft fleet, recommendations for improving flight schedule management and related instructional strategies. Disposition of select assets no longer of value to the aviation program will begin over the next 30 days.

STRATEGIC PLANNING
Stephen Siciliano provided a report that explained the strategic planning process NMC will begin this summer. This will be a strategic planning process that:

• will be continuous versus episodic;
• is cross functional, internally and externally;
• fosters high performance, moving the organization from good to great;
• results in evaluating and articulating strategic directions for the college;
• results in a strategic plan that provides clear direction and has measurable, demonstrable results;
• integrates operational plans in support of strategic directions;
• and helps NMC make resource allocation decisions.

The planning facilitator will be selected in the summer of 2006, with a kick-off of the process in the fall. Strategic Plan recommendations are to go to the trustees for approval in January 2007 in order to inform the budget planning process for FY2008.

FACULTY COUNCIL REPORT
Trustees heard a faculty council report from Steve Drake that included a public appreciation statement for the years of dedicated service Bob Buttleman has given to NMC. He mentioned that Bob Buttleman is an instructor of the highest degree. Bob had the patience to mentor young, sometimes overly confident (cocky) aviation students and taught them to respect the dangers involved with flying airplanes. The report also included the reading of the following official statement:

The Faculty Council, as the representative body of NMC's full-time and part-time faculty, supports the college's recent decisions regarding the future structure and operation of NMC's Aviation Program. The Faculty Council also supports the President's formation of a strategic planning process. We look forward to the changes brought forth by both of these recent developments and the Faculty Council believes that they will best suit the educational needs of NMC's diverse student population. The faculty at NMC looks forward to actively participating in any and all future program planning initiatives, and anticipates a positive working relationship with NMC's administration and the Board of Trustees as programs come forward for evaluation and revision.

CAPITAL IMPROVEMENT PLAN UPDATE
Ed Bailey presented a Capital Improvement Plan prepared by Ed and Marilyn Wieschowski. The report summarized the 5-year capital plan and associated plant fund reserves, and showed that the 2006-07 NMC Resource Guidelines Criteria for the physical plant maintenance is being met by the total plant fund reserves and the proposed FY2007 maintenance budget.

BBQ BOARD REPORT
Bob Brick announced that:

• Corporate Sales have surpassed the goal of 3,500 tickets! As of Friday, April 21, 3,906 tickets have been sold through this effort.
• Several TCAPS elementary schools are participating again this year and the promotion has been expanded to include all elementary schools in the five-county area. Schools earn $1.00 for each ticket they sell.
• NMC Day is Friday, April 28, in most financial institutions and Olesons Food Stores. The goal of the day is to raise community awareness of the BBQ.
• Volunteer Appreciation Breakfast is Tuesday, May 16, 7:45 a.m. in Hagerty Center Room C. Invitations are being mailed this week. We hope you can join us!
• The BBQ Board is now concentrating on all the details for the event and looking forward to hosting the "Biggest Buffalo BBQ Ever!"

BOARD FINANCE AND AUDIT COMMITTEE
Jay Hooper reported that the Finance and Audit Committee considered the following at their meeting on April 18, 2006:

• Reviewed the fiscal year financials through March 31 and noted that the overall financial results are within the approved budget for the year;
• Heard a report that the operating surplus in the FY07 "Budget for Discussion" decreased by $51,387 due to three new approved positions.;
• Heard an update on the 5-year Capital Improvement Plan;
• Received a briefing from Marguerite Cotto regarding the University of North Dakota's recommendations for NMC's Aviation Program;
• Heard a report that Ed Bailey is working with the architects to bring the Oleson Center renovation project costs down and the revised project will be presented to the Board at their special meeting May 1;
• Agreed with a recommendation from Tim Nelson that $1,000,000 be invested with Northwestern Bank.

BOARD STRATEGIC GOALS COMMITTEE
Committee Chair Cheryl Gore Follette reported that the committee had met on April 20, and the following occurred:

• Received an Aviation program update from Marguerite Cotto and approved a recommendation to the full Board to begin disposition of select Aviation program assets;
• Heard from Kathleen Guy on a proposed strategic planning process for 2006-2007, which the committee supported.

BOARD POLICY COMMITTEE REPORT
Chair Ross Childs stated that the committee did not meet in April. Policy review is suspended until after implementation of the AQIP process.

FOUNDATION REPORT
No report.

FOUNDATION FINANCE AND AUDIT COMMITTEE REPORT
Ross Childs reported that, at the Foundation Finance and Audit Committee meeting on April 19, the committee:

• Heard a presentation on investment performance from National City Bank;
  • Investments produced a 5.06% return for the quarter ending March 31, 2006
  • Investments produced a one-year return of 12.24%
• Received an overall portfolio report for the quarter ending March 31, 2006, reflecting a 4.34% return and FYTD time weighted return of 9.18%;
• Received a quarterly statement of activities for the Foundation, which reflects excess revenue of $8,813,403;
• Decided to solicit input from current portfolio managers on relationship activity encompassing the three directives established by the NMC Foundation in 2003. Directives include:
  1. portfolio management and fee structure
  2. corporate relationship and volunteer activities
  3. nurturing of donor relationships with NMC.

BOARD CHAIR REPORT
Board Chair Jay Hooper reported on a meeting he and Tim had last week with the Record-Eagle editors. Jay thought the meeting went well and looks forward to future meetings with them. Jay also proposed conducting future board meetings off campus at various community locations.

PRESIDENT'S REPORT
President Nelson was not present at this meeting.

PUBLIC INPUT
Steve Beeker of the Northwest Region Airport Commission provided public input that included support for NMC's aviation program and highlighted how important and valuable the program is to the region.

FINANCE COMMITTEE RECOMMENDATION: BOND PROJECTS
Elaine Wood moved to authorize the administration to request bids for the remaining bond-funded projects as presented. Ross Childs seconded the motion; motion passed.

DISPOSITION OF ASSETS
On a motion by Ted Mattis, seconded by Cheryl Gore Follette, the board authorized the administration to begin the disposition of select assets no longer of value to the Aviation Program.

ADJOURNMENT
The meeting was adjourned at 7:35 p.m.

Recorded by
Karen Sabin