NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEES
MONDAY, JUNE 26, 2006, GLC Room 112

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

APPROVAL OF AGENDA
Bob Brick moved to approve the agenda. Seconded by Elaine Wood, the motion carried.

PUBLIC HEARING ON 2006-2007 BUDGET
On a motion by Elaine Wood, seconded by Ross Childs, the regular meeting was closed and the budget hearing was opened. Tim Nelson indicated that the purpose of the budget hearing was to review the 2006-2007 budget before the public, and to invite the citizens to ask questions and provide input. After receiving no public input, Elaine Wood made a motion that the budget hearing be closed and the regular meeting reconvened. Seconded by Ross Childs, the motion passed.

CONSENT ITEMS
Elaine Wood made a motion to approve the consent agenda. The motion was seconded by Cheryl Follette. The following items were approved:

• Minutes of the May 22, 2006, regular meeting and the June 5, 2006, special meeting;
• Contributions for May 2006;
• Summary report for general fund accounts as of May 31, 2006 (attached);
• AT&T Telephone service renewal contracts;
• Sale of used Extreme network switches;
• One-year renewal of aircraft maintenance contract;
• M-TEC ice protection canopies.

FACULTY COUNCIL REPORT
Trustees heard a Faculty Council report from Gordon Niemi, in which he reported that summer classes were going well. He highlighted the successful Science/Math outreach program that culminated in an award ceremony on May 25, and thanked Ted Mattis for his three and one-half years of service as an NMC trustee.

BBQ BOARD REPORT
Bob Brick reported that the 50th anniversary BBQ was a great success! He recapped that at their August 2005 retreat the BBQ Board set goals for this anniversary year (listed below). The board feels they have accomplished those goals and that these same goals can carry us forward through the next 50 years!

• Create Awareness of the BBQ, NMC and Oleson's and Coke's Sponsorships
• Promote a Feeling of Ownership of NMC as a Community Asset
• Boost Attendance and Revenue
• Instill a Sense of Appreciation for the BBQ Tradition
• To have fun!

Results:

• A total of 9,669 meals were served on BBQ Day, including 292 meals that were delivered to area seniors and shut-ins.
• Net proceeds are $54,639.78-an increase of nearly $10,000 over 2005
• The BBQ Board members worked strategically at advance sales this year and were very successful, selling 3,000 more advance tickets than in 2005
• We're in the process of completing the application process for the Guinness Book world record for the largest outdoor buffalo BBQ.

Bob Brick thanked everyone for participating in the BBQ and supporting NMC.

BOARD FINANCE AND AUDIT COMMITTEE
Jay Hooper reported that the Board Finance and Audit Committee met on June 20 to review the FY06 May financial statement, year-end projections, and the FY07 draft budget. Tax resolutions were reviewed for tonight's public hearing and presentation to the board. The committee reviewed a proposal from Plante & Moran for audit services through 2011, which included a gradual price increase because more detailed reports are needed to meet government regulations. The Board approved the sale of specific aircraft at their April 24 meeting, and the Finance Committee recommends that Board approval be sought for any sale over $25,000.

BOARD STRATEGIC GOALS COMMITTEE
Committee Chair Cheryl Gore Follette reported that the committee did not meet in June.

BOARD POLICY COMMITTEE REPORT
Chair Ross Childs stated that policy review is suspended until after implementation of the AQIP process.

FOUNDATION REPORT
Cheryl Follette reported that:

• The Commitment Golf Outing, sponsored by Ed Walker and the Kingsley Club, was held on June 14th. Proceeds totaling $14,625 will benefit special enrichment activities for our Commitment scholars like cultural field trips and college visits.
• In more golf news, we have great news. The revenue goal for the NMC Open on August 3rd has already been met and exceeded. Cheryl offered congratulations to Chairman Nick Edson and the entire tournament committee for their successful efforts.
• The NMC Foundation held its regular meeting last Wednesday. Fran Gingras reported as of June 13th, total dollars raised during the 2005-06 Annual Community campaign is over $312,000. Co-chairs for the 2006-07 campaign will be Denny Fedorinchik and Jayne Mohr.
• A "Spirit of Volunteerism" Sculpture Project is underway to recognize all NMC volunteers-past, present and future. Gene Jenneman will chair the committee, and Cheryl will serve on this committee representing the Board of Trustees;. The goal is to dedicate the sculpture at the 2007 BBQ. A fundraising goal of $30,000 has been established and the sculpture will be placed on the main NMC campus in the vicinity south of the Osterlin Library and Tanis Buildings.
• At the Foundation Board's May retreat, two Foundation task force groups will be created, one to mobilize efforts for endowment development and one to strengthen NMC's advocacy efforts at the state and federal levels. Becky Ewing, Jack Stegenga and Fran Gingras agreed to champion the endowment task force and Ross Childs and George Anderson will lead the way in state and federal advocacy efforts.
• The "Focus on NMC" agenda topic was the Michigan Energy Demonstration Center, presented by Carol Evans, Director of Extended Educational Services.
• In Fiscal year to date 2005-06, the NMC Foundation has provided $1,718,736 in support back to the College for program support, scholarships and facilities. For the 10th consecutive year, the NMC Foundation has placed in the top 20 among community college foundations nationally for dollars raised. On a per capita basis, the NMC Foundation's rank advances to 7th in the nation for funds raised per student.

FOUNDATION FINANCE AND AUDIT COMMITTEE REPORT
Ross Childs reported that at their June 14 meeting:

• Michael Barry provided a review of JPMorgan's portfolio performance for the NMC Foundation as of May 31, 2006. The total account performance indicated a one-year return of 8.9%.
• The committee voted to revise the current Foundation Investment Policy to include a category for alternative investments with a range of 0 - 10% of total investments managed on behalf of the NMC Foundation. Five percent of investments will be the neutral position.
• Marilyn Wieschowski presented the proposed Fiscal Year 2006/2007 Foundation Budget, which calls for a total revenue of $2,773,626, expenses of $1,690,039 and projected total net revenues of $1,083,587.
• Kathleen Guy presented a Portfolio Managers performance report reviewing the bank's relationship with NMC beyond investment performance, including their volunteer engagement with NMC, corporate gifts, and customer relationships. Each of these elements is included within the NMC Foundation's Investment Philosophy and Expectations, which has been communicated to each of our five investment managers. The Committee discussed the report and recommended that staff meet with each bank to thank them for their results and encourage more of same.

BOARD CHAIR REPORT
Jay Hooper, on behalf of the Board, expressed appreciation for all of the effort made by so many for the benefit of Northwestern Michigan College and its students.

PRESIDENT'S REPORT
President Tim Nelson thanked all the volunteers who helped with NMC's recent fundraising successes; announced that Senator Levin will be visiting NMC's Energy Demonstration Center on Friday, June 30; gave an update on the MCCA Summer Workshop to be held at the Grand Traverse Resort, July 20-22; and thanked departing staff members Marilyn Wieschowski and Dean Jones for their work at NMC.

PUBLIC INPUT
There was no public input.

CERTIFICATION OF TAXES
Ross Childs made a motion, seconded by Bob Brick, to adopt a resolution to authorize that the millage rate of 2.1838 mills be levied for operation purposes, and the millage rate of 0.73 mills be levied for bond debt services, for the fiscal year 2006-2007. Motion passed.

ADOPTION OF BUDGETS
Elaine Wood moved to adopt the budget resolutions and budgets for the fiscal year 2006-2007 as presented. Bob Brick seconded the motion; carried

OLESON CENTER RENOVATION CONTRACT
Cheryl Follette moved that administration be authorized to enter into a contractual agreement with Hallmark Construction for the Oleson Center Renovation Project in the amount of $943,800 plus a 5% contingency for a total budgeted construction cost of $991,000, to be funded by the Plant Fund to match state funding of $650,000 for a total project budget of $1.3 million. Bill Myers seconded the motion; carried.

FINANCE & AUDIT COMMITTEE RECOMMENDATION: CAPITAL PURCHASES
Bob Brick made a motion, seconded by Ross Childs, to approve the recommended FY2007 capital purchases as presented, to be funded with the FY 2007 capital budget. Motion carried.

FINANCE AND AUDIT COMMITTEE RECOMMENDATION: AUDIT SERVICES
Bob Brick made a motion, seconded by Elaine Wood, that administration be authorized to enter into a five-year contractual agreement with Plante & Moran for annual audit services. Motion carried.

FINANCE AND AUDIT COMMITTEE RECOMMENDATION: VESSEL INSURANCE
Elaine Wood made a motion, seconded by Cheryl Follette, that administration be authorized to secure protection and indemnity insurance for the TS State of Michigan as presented with Bonek Agency, Inc. Motion carried.

FINANCE AND AUDIT COMMITTEE RECOMMENDATION: AVIATION
Cheryl Follete moved that administration be authorized to secure insurance for the Aviation Program through HUB International Midwest Limited as presented. Seconded by Bob Brick, the motion carried.

BOARD APPOINTMENT
Ross Childs made a motion to appoint Doug Bishop to fill the vacancy on the Northwestern Michigan College Board of Trustees until the next election in November 2006. Ross stated that the board had received outstanding candidates to consider in the previous search in March, when Bill Myers was named to fill the existing vacancy. Doug Bishop received the second highest scoring in that process. Bill Myers seconded the motion, which carried.

ADJOURNMENT
The meeting was adjourned at 7:12 p.m.

Recorded by
Karen Sabin