NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEES
MONDAY, DECEMBER 18, 2006, Hagerty Center Room C

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

APPROVAL OF AGENDA - Doug Bishop made a motion to approve the agenda with one change: removal of report item F., Emergency Preparedness Video. Ross Childs seconded the motion, which carried.

CONSENT ITEMS - Ross Childs moved to approve the items on the Consent Agenda. Seconded by Bob Brick, the motion carried.

• Minutes of the November, 2006, regular meeting
• Contributions for November 2006
• Summary Report for General Fund Accounts as of November 30, 2006
• Change of Life Insurance Carrier to Prudential
• Change of Stop Loss Carrier to Sun Life
• Bids and sale transactions of surplus aircraft

MICHIGAN COMMUNITY COLLEGE (MCCA) UPDATE - Mike Hansen, new MCCA President, reported that MCCA is going through a strategic planning process in order to better serve community colleges and share their stories. He said that the governor intends to veto a capital outlay bill that would have benefited several community colleges. He also said nursing will be on the group's agenda, which will participate in a statewide task force addressing the shortage of nurses in the state. He said that community colleges should be prepared for more cuts in state funding, which he expects to occur early in 2007.

EMERGENCY PREPAREDNESS VIDEO - Cathy Anthofer and Alycia Rhein were out because of illness. This report will be rescheduled to the January board meeting.

FACULTY COUNCIL REPORT - Faculty Council Chair Jerry Dobek reported on the revised curriculum for the Automotive Tech program that will begin in the fall. The changes are to bring the program in line with industry standards and needs. He reported on information sessions held for faculty regarding strategic planning, and his meeting with the Strategic Planning Committee, at which he encouraged the group to maintain the college's emphasis on students and keeping learning at the center. The faculty hopes to align the strategic plan with NMC's three main foci: what we are, who we are, and what we want to be. He also reported on the ongoing distribution of "Max Goes to Mars" to schools throughout the state.

BOARD FINANCE AND AUDIT COMMITTEE REPORT - Chair Elaine Wood reported that at their meeting on December 12 the committee:

• Reviewed the monthly financials for November 30;
• Reviewed financial projections for FY07. Cathy Jones projects a surplus but is also anticipating executive order cuts in state funding in the range of $250,000-$400,000;
• Reviewed a recommendation to change the college's life insurance carrier to Prudential;
• Reviewed a recommendation to change the college's stop-loss carrier to Sun Life;
• Heard an explanation from Ed Bailey regarding the need for a board resolution approving the Oleson Center Construction and Completion Assurance Agreement, the first in a series of state-required materials relative to the capital outlay process;
• Heard a recommendation from Cathy Jones to approve a resolution authorizing 50% of the 2007 property taxes be collected in the summer of 2007 and the remaining 50% be collected in winter of 2007. This is a routine annual requirement.

FOUNDATION SCHOLARSHIP REPORT - Kathleen Guy introduced Sonia Clem of Institutional Advancement, who reported on the NMC Foundation's scholarship fund-raising and awards. Among the highlights:

• In FY 2006, $1,296,700 was raised for scholarships. That is a significant increase over the previous year, due to a $250,000 bequest and a $50,000 endowment bequest. More than half of donations to the annual fund are directed toward scholarships.
• In 2006 the NMC Foundation provided $842,241 in donated scholarships to 809 students. That is a record number of students and a record number of dollars awarded. The amount includes nearly $200,000 in "donor-directed" funds given by clubs and organizations, and processed through the Foundation.
• For the 2006-07 year, there are now 74 endowed scholarships available, a number that has increased from 40 just three years ago.
• The college is seeing an increasing demand for financial aid, and is awarding a higher percentage of need-based scholarships than in previous years.
• The NMC Foundation awards more in privately donated scholarships than any other community college in Michigan.

WORKFORCE AND ENRICHMENT CRITERIA - Marguerite Cotto, VP for Lifelong and Professional Learning, provided a report on measuring the effectiveness of NMC's service to Learner Groups Two and Three. Among the highlights:

• 94% of Extended Education participants agreed the quality of the course they took was excellent.
• A field trip experience at Dennos Museum Center scored 4.2 out of a possible 5 on average from school teachers.
• The Dennos' grant peer review for the Michigan Council of Arts and Cultural Affairs scored 94.2 out of 100.
• 47% of community respondents reported attending cultural events at the Dennos Museum Center in the past year (2004).
• 24% of community respondents reported visiting the Observatory.
• 82% of community respondents said that NMC does an excellent or good job in classes offered for personal interest.
• 93% of Extended Education participants who said personal enrichment was their primary learning objective said their learning goals were met by taking the course.
• 97% of community respondents agreed that NMC is a valuable asset to the regional economy. Highlights from the recent economic impact study also were noted, including the fact that NMC accounts for 7 percent of the region's overall economy.
• 93% of participants in organization training agreed that the skills learned will be useful on the job.
• 86% of Extended Education participants who identified their primary learning goal was to learn skills for their job agreed they'd met their learning goal in the course.
• 93% of training participants agreed that the quality of the training was very high.
• 82% of community respondents said NMC does an excellent or good job of training employees for jobs in local businesses and organizations.
• 100% of organizations reported that NMC training made an impact in their operations. Eight organizations quantified the impact: Increased and retained sales of $8 million; cost savings of $812,000; and positive investments of $1.08 million.

BOARD STRATEGIC GOALS COMMITTEE REPORT - Elaine Wood reported that the committee is continuing to look at outcomes and measures for institutional effectiveness. At their December 12 meeting they reviewed outcomes for Champion criteria. The committee will share all the institutional effectiveness criterion with trustees at a future study session.

BOARD POLICY COMMITTEE REPORT - Committee Chair Ross Childs reported that the committee did not meet in November or December. The Strategic Planning Committee may be revising the Mission, Vision and Values policies, and the board will review their recommendations at the February retreat.

FOUNDATION REPORT - Ross Childs reported:

• At their annual meeting on Wednesday, December 13, the Foundation Board elected officers for 2007. Re-elected for 2007 are: Barb Benson, Chair; Jim MacInnis, 1st Vice Chair; Tim Nelson, 2nd Vice Chair; Jim Beckett, Secretary and Bob Boeve, Treasurer.
• Also at the meeting, the Foundation heard a "focus on NMC" report from Barb Zupin about the Upward Bound Program and Jim Bensley about the Commitment Scholarship Program. Both programs are designed to encourage first-generation college students to enroll and succeed in college. The Commitment Scholarship Program is funded entirely by dollars raised through the Foundation.
• The Foundation's Endowment Task Force continues its work to help position the Foundation to engage in a major gifts campaign to raise endowment dollars. The goal will be to help provide guaranteed support for key NMC programs and services.
• The Annual Campaign continues to "add up." We're at 51% of our $315,000 goal and 53% toward our goal of 55 new donors. We'll continue to receive annual gifts through December and into the first quarter of 2007.
• On behalf of the Foundation, please enjoy our gift of holiday baked goods prepared by Fred Laughlin and his students at the Great Lakes Culinary Institute.

FOUNDATION FINANCE AND AUDIT COMMITTEE REPORT - Ross Childs reported that at the NMC Foundation's Finance and Audit Committee meeting on December 6th, the Committee:

• Received a quarterly investment report which reflected a return of 3.18% for the quarter ended September 30th and an annual time weighted return of 8.27%,
• Received and discussed a report from Fifth Third Bank Trust Department on the Foundation's assets under management there. Dennis Piskor also outlined possible alternative investments for the Foundation to consider, and
• Discussed the disposition of donated property on Deepwater Point Road.

BOARD CHAIR REPORT - Board Chair Walter J. Hooper reported about the winter graduate reception he attended, along with Trustee Doug Bishop.

PRESIDENT'S REPORT - Heard a report from Acting President Stephen Siciliano about the status of strategic planning. He said Opening Conference will be used to allow the college community an opportunity to participate in the process. He said that President Tim Nelson anticipates a cut in state funding of between 1 and 3 percent, and has asked officers and directors to prepare for that likelihood. In order to combat this loss in state revenues, the Foundation discussed at their May retreat the new focus of the NMC Foundation efforts to build an endowment for our college.

PUBLIC INPUT - There was no public input.

SUMMER TAX RESOLUTION - On a motion by Doug Bishop, seconded by Ross Childs, the board adopted a resolution to impose summer property tax levy of 50% of the College property taxes, including debt service.

ADOPTION OF POLICIES - Ross Childs moved to adopt Policies D-100.00, D-200.00, D-202.00, D-300.00, D-400.00, D-500.00, D-500.01, D-600.00, D-700.00 on a second reading basis. Elaine Wood seconded the motion, which carried.

OLESON CENTER CONSTRUCTION AND COMPLETION ASSURANCE AGREEMENT - Elaine Wood made a motion to adopt a resolution approving a Construction and Completion Assurance Agreement, a Conveyance of Property, a Lease and an Easement Agreement (if necessary), for the Northwestern Michigan College Oleson Center Renovations. Bob Brick seconded the motion, which carried.

ALTERNATIVE MCCA REPRESENTATIVE - On a motion by Elaine Wood, seconded by Doug Bishop, the board appointed Stephen Siciliano as alternate voting representative at the February, 2007, MCCA Board meeting.

DISCUSSION ITEMS - Karen Sabin reported that President Tim Nelson's surgery went well and he is into the recovery phase of his medical leave.

ADJOURNMENT - The meeting was adjourned at 7:40 p.m.

Recorded by Karen Sabin