NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEES
Monday, May 21, 2007, oleson center

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

APPROVAL OF AGENDA — Ross Childs moved to approve the agenda.  Seconded by Bob Brick, the motion carried.

FACULTY COUNCIL REPORT – Gordon Niemi introduced himself as the newly elected Faculty Council Chair and announced that Mike Surgalski is Vice Chair, Jim Press is Secretary/Treasurer.  Other Faculty Council members include Deb Pharo, Marty Trapp, Robb Houston, and Tamella Livengood.  Gordon noted that Council members represent six academic areas.  Gordon said he attended a conference over the weekend and received many new ideas he will put to use in the classroom.

BOARD FINANCE AND AUDIT COMMITTEE REPORT – Chair Elaine Wood reported that the Committee met on May 15 and reviewed:

• Monthly Financials for April 30, 2007 - Both revenue and expenses are in line with the budget for this time of year.  She noted that to date, NMC has received $100,000 of the $300,000 expected from MARAD.  The academic year is 83% complete and several expense categories are falling within the 60%-70% range, reflecting College wide efforts to control spending given the uncertain nature of State funding.
• FY07 End-of-Year Projections.  Projections for fiscal 2006-2007 year-end continue to be positive.  It’s hard to know the final impact, given the likelihood of State funding cuts.
• COAT Recommendation for Computer Purchases. Craig Mulder presented a recommendation for a 50% replacement of NMC computers to be accomplished in 2007 and 50% in 2009.  This change from the normal 20% annual replacement is predicated on the rollout of the VISTA operating system, which will replace the current XP platform. The Committee is recommending approval of this purchase this evening.
• Notice of Truth in Taxation / Summer Tax Resolution.  It is required each year for the Board to set a time to have a Truth-in-Taxation Hearing in which we inform the public of the increase in property values and the resulting revenue from that increase.  The resolution we are acting on tonight establishes the June 25, 2007 regular Board of Trustees meeting as the time for the Truth-in-Taxation Hearing, as well, as the Budget Hearing.  Upon completing the public hearing, the Board may then take action to certify taxes for the 2007-2008 fiscal year. 
• Total Compensation Committee.  Bill Hendry presented the Total Compensation Committee Recommendation.  The key points were: Staff salary increases are recommended between 3.21% and 3.32% with 1.32% scale increases for Support Staff (top of the scale) to 4.62%.  Faculty increases will range from 2.66% (top of scale) to 6.376%.  Bill stated that NMC employees agreed to move away from the step plan and use ranges starting this year.  Most institutions in our peer group have already moved to this approach.   Regarding benefits, a comparison of Blue Cross Blue Shield and PPOM was done for the 2006 plan year.  PPOM continues to be the most appropriate network with the greatest aggregate discounts for NMC.  The college has a goal of $100,000 in annual savings next year through continuing efforts to educate faculty/staff on choosing in network doctors, using generic drugs, and preventative measures. 
• Security Services Recommendation.  NMC is expanding the security staff coverage at the five campuses through the use of outsourced professional security services. On April 12, 2007 a Request for Proposal (RFP) was issued to four firms.  It is recommended that DK Security Services be awarded the six-month contract effective July 1, 2007 based on the fact that DK provides a higher level of training for their personnel.  The Committee recommends approval of this contract.
• Apartment Door Replacement.  The apartment doors have not been upgraded since the original construction.  Ed Bailey recommended awarding this contract to the lowest qualified bidder, Rockford Construction Company.  The Committee concurs with this recommendation and it is on tonight’s agenda for action.
• The Committee also discussed two additional items.  The Maintenance/Custodial Union Contract has been negotiated and the union will be voting to ratify the proposed contract soon.  Once ratified, it will be brought to the Board of Trustees as a consent item.  The Committee discussed the pros and cons of installing a fence next to the Northwestern Michigan College property along Milliken Drive.  The Committee agreed that there should be more discussion with community members, TC Central High School Officials and TC Police to determine the best approach to this issue.

BOARD STRATEGIC GOALS COMMITTEE – Committee Chair Cheryl Follette stated that the Strategic Goals Committee did not meet in May.  The next meeting is scheduled for June 19.

BOARD POLICY COMMITTEE REPORT – Committee Chair Jay Hooper stated that the Committee met on May 14 and considered the following items:

• Amendment to A-105.00 – Consent Agenda Items.  This policy calls for “Bid acceptance recommendations” to be placed on the Consent Agenda for approval.  Since all bids do not come to the board for approval, it was suggested that the language be amended to read, “Bid acceptance recommendations requiring board approval.”  The Committee recommends acceptance of this change on a first-reading basis.
•  Amendment to C-104.00 – Institutional Effectiveness Criteria.  A request was received from Bill Hendry to change the word “personnel” to “human resources” in item 2.d.  The committee agreed to this change; since it is not substantive, the change can be made without board action.
• Amendments to D-500.00 Operations and D-700.00 Culture. The committee heard a recommendation from Craig Mulder to remove some sections from D-500.00 Operations and add them to D-700 Culture.  Those changes are included in tonight’s meeting materials and the Committee recommends adoption.
• Public Input at board meetings.  It was noted that Public Input currently occurs on the Board agenda following approval of the consent agenda.  The Committee feels Public Input would be better placed to precede the Consent items so input can be heard prior to action.  That change has been made on tonight’s agenda and will be made on future agendas.

FOUNDATION REPORT – Cheryl Follette reported the following:

• Foundation members are going to 17 area high school honors ceremonies to present Commit-ment and Presidential Scholarships to graduating students who will attend NMC this fall.
• The Outstanding Alumni Nominating Committee has selected John Robert Williams as the 2007 honoree.  John was recognized at commencement on May 5th and will be honored at the Outstanding Alumnus Dinner on Friday, June 29th. 
• Yesterday’s BBQ was our 51st and Cheryl thanked all who volunteered for, purchased tickets and attended this community event.  Special features yesterday included a reception for Traverse City newcomers to introduce them to the college and the BBQ and a reception for alumni with retired and current faculty members to renew acquaintances.  Representatives from Lake Michigan College in Benton Harbor attended in hopes that they might be able to start a similar event on their campus.
• Next on the Foundation’s event agenda is the Kingsley Club Golf Outing to benefit NMC’s Commitment Scholarship Program.  This event is hosted each year by Ed Walker at the Kingsley Club and will take place on Wednesday, June 13th at 1:00 p.m.  Forty students from area schools are inducted into this program each year.  This fall, the students who were inducted in 2002 will begin their college careers at NMC.
• Chris Studenka has joined the Office of Institutional Advancement as Director of Development and Major and Planned Gifts.  A native of Lansing, Chris most recently was the Development Officer for the University of Utah, College of Engineering.  Prior to Utah, Chris was the Director of Development for the College of Science and Technology at Central Michigan University.  We’re glad to have him on board.
• The next meeting of the Foundation Board will be June 27th.

FOUNDATION FINANCE AND AUDIT COMMITTEE REPORT– Ross Childs reported that the NMC Foundation Finance & Audit Committee did not meet in May.

BOARD CHAIR REPORT – Chair Jay Hooper said the board will be going into closed session tonight to conduct the President’s performance review.  He stated that they will not be making any recommendations regarding the President’s compensation until that committee has had an opportunity to review the information and make a recommendation. 

PRESIDENT’S REPORT – President Tim Nelson thanked the NMC community for its help with yesterday’s Barbecue.  He asked Trustee Doug Bishop, as the board’s representative on the BBQ Board, to provide an update.  Doug Bishop said it was cold, but it was dry, and everyone had a great time.  The final figures will be announced at the next Board meeting; just under 8,500 people were served and 344 home meals were delivered.  The Alumni reception was a new event.  There were 15 current faculty and 15 retired faculty and staff in attendance, and 55 alumni signed the guest book.  Another new addition was the six foot Titan buffalo!  Doug noted that the group of NMC Phi Theta Kappa and Student Government Association students  did a tremendous job working with trustees as people were coming out of food lines.

President Nelson said the T/S State of Michigan training cruise continues on its way.  He thanked trustees for being present at the “send-off.”  President Nelson met the vessel in Port Huron last week and spent a couple hours on board.  He noted that impressive harbor improvements have been made in Port Huron.  Tim said the college expects to receive the remaining $200,000 in federal funds soon and remains hopeful that funding for the final phase of our harbor restoration project will be forthcoming. He thanked the Michigan congressional delegation for its efforts.

President Nelson met with state legislators last week in Lansing as part of Community College Day in Michigan, and said he does not expect a resolution to the state budget picture until the fall. He has asked Planning and Budget Council for two budget scenarios, one representing a $900,000 loss and one representing a $450,000 loss in state revenue.  He noted that some community colleges are considering pre-opening or mid-year tuition increases to deal with the funding cuts. 

Tim reported that Alexy Morozov, one of our international students, is receiving a prestigious scholarship from the Jack Kent Cooke Foundation.  He is one of 51 scholars selected from among 723 applicants and is awaiting responses from MIT, Stanford, U of M and others.  Tim also noted that NMC is co-hosting, with 9&10 News, an event called “Best in Class,” a luncheon honoring area valedictorians and salutatorians.  He will address the group.

PUBLIC INPUT – At the request of retired faculty members Dick Gertz and Dave Loveland, Steve Drake read a proposal that the trustees consider naming the old Aviation Building the Bob and Trish Buttleman and Judy and Doug Izard Building, in recognition of their many years of dedicated leadership and service to the Aviation program.

CONSENT ITEMS – Cheryl Follette asked that Item P, Total Compensation Committee Recommendation, be removed from the consent agenda for discussion.  Chair Hooper agreed to move this item to follow Action Item V. 

Doug Bishop made a motion to approve the following consent agenda items.  Seconded by Elaine Wood, the motion carried.

• Minutes of the April 23, 2007, regular meeting
• Contributions for April 2007 totaling $179,844.26
• Summary Report for General Fund Accounts as of April 30, 2007 (attached)

TRUTH-IN-TAXATION AND BUDGET HEARING NOTICE. On a motion by Ross Childs, seconded by Bill Myers, the Truth-in-Taxation Resolution was approved, establishing the June 25, 2007 regular Board meeting as the time of the Truth-in-Taxation and Budget Hearings. 

MCCA REPRESENTATIVE AND ALTERNATE.  Cheryl Follette moved to designate Robert Brick as NMC’s representative to the MCCA Board of Directors for 2007-2008, with Elaine Wood as alternate.  Ross Childs seconded the motion.  Before voting, Cheryl asked Bob and Elaine if they wish to continue serving in that capacity; both responded positively.  Tim explained that each community college has two authorized votes—the President and the trustee representative.  If neither can be present for a vote, it’s possible to send a proxy.  Motion carried.

POLICY AMENDMENTS.  On a motion by Cheryl Follette, seconded by Elaine Wood, amendments to Policies A-105.00, D-500.00 and D-700.00 were approved as presented. 

SECURITY SERVICES CONTRACT.  Elaine Wood made a motion to authorize a contractual agreement for security services with DK Security Services for a period of six months, effective July 1, 2007.  Seconded by Cheryl Follette, the motion passed. 

APARTMENT DOORS.  Bob Brick made a to motion authorize a contractual agreement with Rockford Construction Company to replace interior and exterior apartment doors at a cost of $54,326 plus a 10% contingency, for a total project budget of $59,800 to be funded from the Student Housing Fund. Elaine Wood seconded the motion.  Bill Myers questioned whether Rockford Construction is a local firm; Ed Bailey explained that they have an office presence in the area and all subcontractors are local.  Motion carried.

COMPUTER PURCHASES.  Doug Bishop moved to approve purchase of computers costing $255,308, with $220,308 coming from Working capital Reserve and $35,000 coming from the current General Fund capital budget.  Bob Brick seconded the motion.  Bill Myers asked about the inclusion of software, whether NMC should be looking at Apple computers, licensing requirements, and options for energy efficiency.  Craig Mulder responded and, following discussion, the motion carried.

TOTAL COMPENSATION COMMITTEE RECOMMENDATION.  This item had been removed from the consent agenda for discussion at the request of Cheryl Follette.  Cheryl explained her position that, given the Michigan economy, raises should not be given.  Elaine countered that in terms of process, although we know the state budget is in crisis, we do not know what the resolution is going to be.  When the impact on us is known, it is up to the administration to bring a new recommendation.  Bill Myers suggested it might be better to defer this discussion, since the president has asked Planning and Budget Council to prepare three budget scenarios: no new state funds, a $450,000 decrease, and a $900,000 decrease.  Ross Childs stated that he understands the state economic conditions and understands Cheryl’s position, but we have existing agreements and should begin to look at change options for another year.  Jay Hooper said he echoes Ross’ position.  Jay stated that Bill Hendry did a good job of explaining what had been done and the recommendation makes sense.  Cheryl agreed that the study is sound and the findings are sound, but doesn’t feel the college can afford it.  Elaine said she would be more comfortable discussing “no raises” along with other budget-cutting options.

Doug Bishop moved that the Total Compensation Committee recommendations for 2007-08 be approved as presented.  Ross Childs seconded the motion.  Doug stated that he agrees with the comments made by Jay, Elaine and Ross regarding honoring the procedures we have in place.  Nothing is going to change before trustees approve next year’s budget in June.  Bill noted that his property taxes fell this year and the soft real estate market is going to impact tax revenue.  He noted it is frustrating to not have all of the data.  Elaine said Planning and Budget Council has a tough job, but it is part of our shared governance process.  It is trustees’ job to look at recommendations that come from that process. 

Chair Jay Hooper asked for a roll-call vote.  Ayes: Doug Bishop, Ross Childs, Jay Hooper, Bill Myers, Elaine Wood.  Nays:  Bob Brick, Cheryl Follette.  Motion carried.

The result of the annual Staff Salary Study is shown below.  These increases are recommended for 2007-08.

All Administrative, Professional and Technical/Paraprofessional staff are below the top of their scales and will receive the total percent salary increase.  Support Staff on step 10 of their scale may also be eligible for Valued Service (a lump sum payment tied to professional development).  In the past, all but one member of Support Staff that were eligible for Valued Service participated in the plan.

Faculty Annual Salary Study and Career Earnings Benchmark
The annual study is complete and has been presented to the Faculty Career Plan Committee.  The 27 Michigan Community College average scale increase for 2006-07 and the average career earnings based on 2006-07 scales were calculated.  The same increase of 2.66% has been recommended for the Adjunct/ Overload scale.

Maintenance and Custodial Staff Scale Increases
According to the current collective bargaining agreement for maintenance and custodial staff, salary increases are determined by the Consumer Price Index (CPI) annual increase from May through April for the Midwest non-metropolitan area.  As of November this annual increase was 1.1%.  For early planning purposes 3.0% will be used because of the traditional increases in the CPI each spring.

The Bargaining Agreement for this group expires June 30, 2007 and contract negotiations are currently in progress. The negotiated contract for July 1, 2007 may impact this projection.

Faculty Annual Salary Study and Career Earnings Benchmark
The same increase of 2.66% has been recommended for the Adjunct/ Overload scale.

PRESIDENT’S PERFORMANCE EVALUATION.  Bill Myers moved that the Board go into closed session for the annual performance evaluation of the president per his request for a closed session.  Doug Bishop seconded the motion.  Chair Hooper requested a roll-call vote.  Ayes: Doug Bishop, Bob Brick, Ross Childs, Cheryl Follette, Jay Hooper, Bill Myers, Elaine Wood.  Nays: none

REGULAR MEETING RECONVENED.  Elaine Wood moved to reconvene the regular meeting.  Seconded by Bob Brick, the motion passed.  The regular meeting reconvened at 9:05 p.m.

DISCUSSION.  Elaine Wood told trustees she will incorporate comments from tonight’s closed session into the evaluation forms and will make the document available to trustees and the public.
(results attached).

Recorded by Karen Sabin