NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEES
MONDAY, OCTOBER 22, 2007, OLESON CENTER

CALL TO ORDER - Chair Walter J. Hooper called the meeting to order at 6:32 p.m.

APPROVAL OF AGENDA - Cheryl Follette moved to approve the agenda. Seconded by Doug Bishop, the motion carried.

FACULTY COUNCIL REPORT - Mike Surgalski said that Faculty Council would like to thank all faculty and staff who led breakout sessions at the recent Professional Development Day. They also thank Linda Rea, the CIE Board and Karen Howie for the advance planning and preparation. The format allowed faculty to choose the sessions that were most relevant to them. The day was a big success, with everyone learning something from the presenters and each other.

Mike also reported on the Women on Water (WOW) initiative, which lends support to women in what is traditionally a male-dominated field. Speakers came from New York to Texas, Maine to California and included MARAD representatives and Katie Haven from MERPAC. John Berck was the driving force behind what is now a national initiative, which started here at GLMA/NMC.

MONTHLY FINANCIAL REPORT - Cathly Jones, Vice President for Finance and Administration, referenced the Summary Report for General Fund Accounts as of September 30, 2007, in the meeting materials under tab F. She asked for questions; there were none.

FOUNDATION FINANCE AND AUDIT COMMITTEE REPORT - At the NMC Foundation Finance & Audit Committee meeting on October 17, the Committee:

• Heard a presentation on the NMC Foundation Audit for the Year Ended June 30, 2007 from Plante and Moran which issued an Unqualified Opinion - the most favorable audit judgment obtainable.
• Received an overall portfolio report for the quarter ending September 30, 2007 reflecting a 1.87% return and an annual time weighted return of 13.16%.
• Received a quarterly statement of activities for the Foundation which reflects excess revenue to expenses of $480,269 as of September 30, 2007.
• Moved to accept a gift of land from George and Clara McManus located in the Cinnamon Ridge subdivision. This property was recently appraised at $40,500.
• Received an Endowment Scholarship report reflecting 99 endowed scholarships, 97 of which have funds available to award.

FOUNDATION REPORT - Cheryl Follette reported on the following Foundation activities:

• Members of the NMC Foundation's Biederman Society attended a reception on October 10 in their honor at the Dennos Museum Center. This annual event recognizes special NMC friends who have made a planned gift to the college.
• The 2007 Annual Community Campaign will officially kick-off on October 24. Fourteen teams of volunteers are participating this year by making personal calls to more than 800 individuals and businesses. New this year is a student team, headed by NMC Foundation student member Melanie Schurkamp. Prior to kick-off, $73,000 has been received toward our $330,000 goal from faculty, staff and matching gift donors.
• WNMC has just completed its fall on-air appeal for operational funding. While final tallies are not yet in, we anticipate achieving our goal in the range of $30,000. The on-air campaign is conducted twice annually in the fall and spring. In addition, WNMC is funded through student activity fees and underwriting.
• During the last quarter, the NMC Foundation hosted visitors from the Alamo Community College District in Texas, Lansing Community College and Jackson Community College. Each came to see how the NMC Foundation successfully operates and raises funds-which is a testimony to our college, volunteers, staff and community.
• The Foundation Board will meet this Wednesday at the University Center for its regular bi-monthly meeting.

BOARD POLICY COMMITTEE REPORT - Committee Chair Jay Hooper reported that trustees discussed at their October 8 study session the three policies that appear on tonight's agenda for adoption on a first-reading basis.

• Policy A-100.00 Board of Trustees By-laws. There have been changes in the law regarding filling board vacancies. If a vacancy is not filled within 30 days, the intermediate school district shall appoint a trustee to fill that vacancy. The law also articulates actions that constitute a vacancy, and that list of actions have been incorporated into the draft recommended for adoption tonight.
• Conflict of Interest Policy. The draft policy is consistent with the requirements of the Michigan Public Entity Conflict of Interest Law, it removes any risk of a criminal determination for inadvertent violations, and it represents a reasonable standard consistent with general expectations of a public body operating in Michigan.
• Donation Acceptance Policy. The NMC Foundation is clarifying its policies and procedures for handling all types of donations, including money, real property, etc. This policy defines the NMC Board of Trustees role and practice relative to acceptance of donations. It removes ambiguity and is consistent with the Foundation's policies and procedures.

BOARD CHAIR REPORT - No report.

PRESIDENT'S REPORT - President Tim Nelson thanked Cathy Jones and her department for their outstanding work on the audit. The process went from multi months to a few weeks. He also expressed appreciation to the entire college for everything they did to help have this kind of report.

The results of the College Board survey on higher education affordability were released today. NMC tuition compares favorably to peers and is ahead of the curve.

President Nelson announced that the Dennos Museum Center has received a $1 million gift from Barb and Dudley Smith. The gift, to the museum's endowment, is the largest single gift from a living donor in the history of the NMC Foundation.

PUBLIC INPUT - There was no public input.

CONSENT ITEMS - On a motion by Ross Childs, seconded by Doug Bishop, the following items were approved:

• Minutes of the September 24, 2007 and the October 8 meetings
• Contributions for September, 2007, totaling $193,719.96
• Grant Notifications for quarter ending September 30, 2007
• Summary Report for General Fund Accounts as of September 30, 2007 (attached).

AUDIT COMMITTEE RECOMMENDTION: ACCEPTANCE OF NMC AUDIT - On a motion by Doug Bishop, seconded by Bob Brick, the financial audit for Northwestern Michigan College for the fiscal year ending June 30, 2007, was accepted as presented.

AUDIT COMMITTEE RECOMMENDATION: ACCEPTANCE OF NMC FOUNDATION AUDIT - On a motion by Ross Childs, seconded by Bob Brick, the board accepted the financial audit for the NMC Foundation for the fiscal year ending June 30, 2007.

STRATEGIC AREAS OF EMPHASIS FOR FY08 - Doug Bishop made a motion to endorse the strategic areas of emphasis for 2007-08 as presented. Seconded by Ross Childs, the motion carried.

POLICY A-100.00 - Cheryl Follette made a motion, seconded by Ross Childs, to approve revisions to Policy A-100.00 Board of Trustees Bylaws on a first-reading basis. Motion carried.

POLICY A-102.01 - On a motion by Ross Childs, seconded by Doug Bishop, the board approved new Policy A-102.01 Conflict of Interest on a first reading basis.

POLICY A-105.01 - Bob Brick made a motion, seconded by Doug Bishop, to approve new Policy A-105.01 Donation Acceptance on a first-reading basis. Motion carried.

FY09 CAPITAL OUTLAY PLAN -Ross Childs made a motion, seconded by Cheryl Follette, to approve the Fiscal Year 2009 Capital Outlay Plan for submittal to the Michigan Office of the State Budget, as presented. President Nelson pointed out that he considered the suggestions made by trustees at their October 8, 2007 study session and removed from the list all projects under $1 million. Costs were adjusted to future value. Motion carried.

DISCUSSION:

• Doug Bishop said that College Night for the second year in a row was held at Great Lakes Campus. It is good to get one of our signature facilities out in front of members of the public, who came away very impressed.

ADJOURNMENT - The meeting adjourned at 7:06 p.m.

Recorded by Karen Sabin