NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEES
Monday, april 23, 2007, oleson center

DINNER MEETING – Trustees and executive staff met for dinner and conversation with the following members of the Student Government Association:  Will Burgess, VP (Communications rep); Salvatore Randazzo (GLMA rep); Christina Finstad (Humanities rep); Theo Mjjaphoko, Rotarac (International student); Kris Kovach, (Residence Hall rep); Kent McNeil (open chair); Alexey Morozov; and Lisa Blackford, advisor.  Students provided a PowerPoint summary of the SGA’s 2006-07 activities, plus a video presentation by Alexey of the International Baja Competition that took place in Florida this spring

CALL TO ORDER — Vice Chair K. Ross Childs called the meeting to order at 6:42 p.m.

APPROVAL OF AGENDA — Elaine Wood asked to include one additional action item (T), Purchase of Computers, to the agenda as a recommendation of the Finance Committee.  Doug Bishop made a motion to approve the agenda with that addition.  Seconded by Ross Childs, motion carried.

FACULTY COUNCIL REPORT – Faculty Council Chair Jerry Dobek updated the board about faculty discussions regarding the balance of fulltime and adjunct faculty. He said the academic division chairs will continue to research this topic and offer input. He also congratulated Dana Boomer, who was honored with a national Phi Theta Kappa award, and the NMC Baja team, which finished 27th out of 75 cars in a national competition in Florida. He encouraged participation in commencement on May 5, and said we expect more than 100 students to participate.

BOARD FINANCE AND AUDIT COMMITTEE REPORT – Chair Elaine Wood reported that the Committee met on April 17 and:

• Reviewed the monthly financial reports; revenues and expenses are in line with budget;
• Heard an update by Cathy Jones on the end-of-year projections.  The projected surplus for FY07 totals $393,816.  However, changing federal and state revenue projections could have a significant impact on the final numbers;
• Recommends board approval of payment to Grand Traverse Construction for work completed on the apartments that was not covered by insurance;
• Recommends selection of environmental consultant Gosling-Czubak, Inc. to manage the final phase of remediation associated with the former underground storage tank on main campus.  Approved a proposal to spend $137,500 to complete the final phase of environmental remediation associated with the former underground storage tank on NMC’s main campus. When the tank was removed in 1991 it was discovered to have been leaking gasoline, and NMC has been cleaning the site and monitoring it ever since. Completion of this final phase will accelerate the elimination of the contamination and allow NMC to receive “unrestricted closure” designation from the Department of Environmental Quality. The area affected is less than one third of an acre, and it has been monitored regularly to ensure that there is no danger to people or to groundwater. Funding will be $100,000 from the Plant Fund and a $50,000 grant from the Department of Environmental Quality. 
• Recommends granting permission to GLMA to purchase up to $40,000 in fuel for the T/S State of Michigan during their 16-day training cruise in May.  Elaine noted that part of the fuel cost for the trip is covered by Federal funds.
• Upcoming topics for the Committee include natural gas purchases and review of insurance for  health coverage, property, aircraft and the vessel.

  BOARD STRATEGIC GOALS COMMITTEE – Chair Cheryl Follette stated that the Strategic Goals Committee met last week.  The Committee:

• Heard a description from Stephen Siciliano of how Citizen Advisory Committees are selected and how we use them;
• With Craig Mulder’s help, looked at the outcomes and measures for the Operations criterion of Institutional Effectiveness;
• Heard an update about the prop and anchor issues at the Great Lakes Campus.  The anchor was donated to NMC and the board wants to determine the best way to handle this gift.  There are issues relating to liability (attractive nuisance).  More to follow.
• Looked at a proposed college seal; no recommendation forthcoming at this time.

BOARD POLICY COMMITTEE REPORT – The committee did not meet in April. 

FOUNDATION REPORT – Cheryl Follette reported at their upcoming meeting on April 25, the Foundation Board will:

• Hear an update from Gene Jenneman on the “Spirit of Volunteerism” sculpture and plans for a dedication on June 6 from 4:00 to 6:00 p.m.  The dedication ceremony will take place at 4:30 p.m., followed by a reception in the Health and Science Building Atrium. 
• Find out the latest information on the NMC Barbecue scheduled for May 20.  Tickets to the BBQ are now available at local schools and various NMC locations, and will soon be available at area banks and credit unions.  Projects recommended for funding this year include:  1) 2007-08 NMC Film Series, 2) Community-Based Watershed Science, 3) BBQ Smoker for culinary, 4) WNMC Transmitter Upgrade and 5) the final $10,000 payment of pledge made for Great Lakes Campus.
• Learn that over $55,000 in sponsorships has been pledged for the NMC Scholarship Open on August 2, 74% of the $74,250 goal.  Golfer invitations were mailed the week of April 9 and tee times are being reserved daily.  So far the Betsie Valley course is 50% filled and Mountain Ridge is at 23% of capacity.  Those interested may call 995-1021 for reservations and information.
• Have an opportunity to sign up for Presidential and Commitment Scholarship presentations at all area schools beginning in early May.

FOUNDATION FINANCE AND AUDIT COMMITTEE REPORT– Ross Childs reported that at the NMC Foundation Finance & Audit Committee meeting on April 18, the Committee:

• Heard a presentation on investment performance from National City Bank
• Investments produced a 1.75% return; for the quarter ending March 31, 2007.
• Investments produced a one-year return of 8.46%.
• Received an overall portfolio report for the quarter ending 3-31-07 reflecting a 2.06% quarterly return, FYTD time weighted return of 9.29% and Ending Market Value of $24,616,410.
• Received a quarterly statement of activities for the Foundation which reflects excess revenue of $2,254,872.
• Approved the FY08 NMC Foundation Budget indicating Excess Investment Income of $1,013,245.
• Approved, with minor revision, an update to the NMC Foundation Investment Policy to include the determination of Investment managers by the NMC Foundation Finance & Audit Committee.  Revisions included change of committee name from NMC Foundation Finance Committee to NMC Foundation Finance & Audit Committee and the removal of the word past when referring to relationships with NMC.

BOARD CHAIR REPORT – Chair Jay Hooper reminded trustees of the following upcoming events:  Commencement on Saturday, May 5; GLMA Graduation Dinner that evening; Board Special Meeting on Monday, May 7; and the NMC BBQ on Sunday, May 20.

PRESIDENT’S REPORT – President Tim Nelson

• acknowledged the tragedy that occurred at Virginia Tech this past week;
• noted the passing of M-TEC building namesake, John Parsons;
• reported that the funding for the second and final phase of the harbor renovation has passed the U.S. House of Representatives, and awaits Senate action;
• will be attending MCCA Board of Directors meeting in Benton Harbor this Thursday and Friday;
• will be sending college representatives to Escanaba on May 11 to testify before the Senate Appropriations Committee.

CONSENT ITEMS – Elaine Wood made a motion to approve the following consent agenda items.  Seconded by Bill Myers, the motion carried.

• Minutes of the March 26, 2007, regular meeting
• Contributions for March 2007 totaling $82,008.15
• 3rd quarter grant notifications totaling $119,850
• Summary Report for General Fund Accounts as of March 31, 2007 (attached)
• Authorization to pay Grand Traverse Construction $28,879.50 for structural repairs to Apartment building 1882
• Authorization for GLMA to purchase fuel for the T/S State of Michigan in an amount not to exceed $40,000 from SemFuel of Green Bay, Wisconsin, during its 16-day training cruise.

PUBLIC INPUT – none

ENVIRONMENTAL CONSULTANT SELECTION – Elaine Wood made a motion, seconded by Doug Bishop, to authorize award of a contract for environmental consulting services and remediation to Gosling-Czubak, Inc. in the amount of $124,900, plus a 10% contingency, for a total project budget of $137,500 to be funded from the Plant Fund and a MDEQ reimbursement grant of $50,000.  Motion carried.

PURCHASE OF COMPUTERS – Elaine Wood moved to approve computer purchases from Dell totaling $184,000.  The purchase is part of a budgeted, ongoing plan to replace approximately one-fifth of the college’s computers each year in order for our technology to remain current.  President Nelson explained that this is part of NMC’s conversion to VISTA.  Seconded by Bob Brick, the motion carried.

Recorded by Karen Sabin